U.S. Markets closed

Brazil court approves contract draft for transfer of rights oil deal

A logo of Brazil's state-run Petrobras oil company is seen at their headquarters in Rio de Janeiro

SAO PAULO (Reuters) - Brazil's federal audits court on Wednesday approved a draft contract for a massive transfer of rights oil deal between state-run oil firm Petroleo Brasileiro SA <PETR4.SA>, better known as Petrobras, and the government.

The highly anticipated auction, which takes place next month, could take in $26 billion from the combined signing bonuses bidders who win exploration and production rights will be obliged to pay the government.

(Reporting by Marcelo Rochabrun; Editing by Chris Reese)