Puerto Rico power company drops Brazil's Petrobras in new deal to reduce expenses
Puerto Rico's heavily indebted power company says it has signed a new contract to replace Brazilian oil giant Petrobras as the island's main fuel supplier in a bid to save money as a restructuring deadline looms.
The Electric Power Authority said Tuesday that a deal with Connecticut-based Freepoint Commodities will help save $25 million the first year.
Neither the U.S. territory's power company nor Freepoint responded to messages seeking details of the contract.
The power company said it also modified a deal with Spain-based Gas Natural Aprovisionamientos for $30 million in savings. The company will continue to provide natural gas.
The announcement comes two weeks before the power company faces a deadline with creditors to restructure an agency that holds more than $9 billion in debt.