Stilo Share News (STL)

By Marta Nogueira and Rodrigo Viga Gaier

RIO DE JANEIRO, March 27 (Reuters) - Brazil's PetroleoBrasileiro SA will participate "selectively" in anoil auction later this week as the state-controlled oil companyseeks to boost its exploration portfolio, Chief ExecutiveOfficer Pedro Parente said on Tuesday.

An onshore and offshore auction round in Brazil on Thursdaywill be one of the last chances for companies to compete forsome of the world's biggest oil reserves ahead of elections thatcould slow private energy investment in the sector.

"We will go in selectively," Parente said at an event in Riode Janeiro, adding that Petrobras would form consortia withother firms to bid for blocks that require big investments.

Majors are likely to vie for a handful of blocks in theprolific offshore Campos and Santos basins on Thursday, withminimum signing bonuses of up to $575.5 million. Some arerumored to have desirable presalt geology.

Twenty-one companies including Chevron, BP,Exxon, Royal Dutch Shell, Statoil, and Totalhave registered to bid in a round where 70 blocks arebeing offered.

Parente also said Petrobras should at a minimum reach a netdebt goal of 2.5 times earnings before interest, tax,depreciation and amortization this year. Petrobras, he added,could even achieve net debt of 2 times EBITDA if oil pricesremain around $70 per barrel this year.

Petrobras continues to work to regain fuel market share andexpects good results, especially in diesel, Parente added.(Writing by Alexandra AlperEditing by Chizu Nomiyama)