Puerto Rico power company drops Brazil's Petrobras in new deal to reduce expenses

MarketsAssociated Press

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.

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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.