SAO PAULO, Aug 21 (Reuters) - Brazil’s state-run power utility, Eletrobras, will make an initial payment of 452 million reais ($199 million) in overdue fuel bills to state-run oil company Petrobras on Friday, Eletrobras’ chief financial officer said on Thursday.
Centrais Eletricas Brasileiras SA, as Eletrobras is formally known, has fallen behind in its payments to Petrobras for diesel and other fuels used to power thermal-electric power plants in Brazil’s remote Amazon region.
Petroleo Brasileiro SA, known as Petrobras, says the total debt is 7.2 billion reais ($3.2 billion) owed by Eletrobras but the state-run utility says the debt is roughly 4 billion reais ($1.8 billion).
The companies will discuss the value next week, Eletrobras CFO Armando Casado told journalists in Sao Paulo. Eletrobras CEO Jose Costa Neto said on Monday the company expects an accord to settle its debt by the end of the month. ($1 = 2.268 Brazilian reais) (Reporting by Anna Flavia Rochas; Writing by Caroline Stauffer; Editing by Diane Craft)