Petrobras may need to pay US$1.6b in penalties

Rio de Janeiro

BRAZIl'S Petrobras may need to pay record penalties of US$1.6 billion or more to settle US criminal and civil probes into its role in a corruption scandal, a person recently briefed by the company's legal advisers told Reuters.

State-run Petroleo Brasileiro SA, as the company is formally known, expects to face the largest penalties ever levied by US authorities in a corporate corruption investigation, according to the source, who has direct knowledge of the company's thinking. The settlement process could take two to three years, the source said.