State-owned Petróleo Brasileiro SA - Petrobras will suspend any new divestment initiatives in oil exploration or production following a Supreme Court decision, according to a report from Reuters.

The decision suspends an agreement between Petrobras and the Brazilian government that helped shield the company from liability while it seeks to dispose some $27 billion in assets to pay its debts.

The company said the divestment initiatives that started before May will not be affected, and it will seek new ways to continue with its divestment program based on the limits of the decision.

The agreement also imposed transparency rules.