NEW YORK (TheStreet) -- Shares of Petroleo Brasileiro Petrobras (PBR) are slipping, down 3.42% to $7.49 in mid-morning trading on Thursday, as the Brazilian government reportedly works on a plan to help the state-controlled oil company borrow money through an offering of asset-backed securities before the end of the year, according to Reuters.
Brazil's mines and energy minister Edison Lobão said the rescue plan would help Petrobras fund exploration and other operations next year.
The debt offer would involve the $3.4 billion that state-controlled power utility company Eletrobras (EBR) owes the oil company. That amount will be used as collateral for the debt issuance, with the government guaranteeing two-thirds of the deal while Eletrobras guarantees the remainder.
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Recently, Brazil's top prosecutor called for the company's management to step down in light of the recent corruption scandal, Reuters reported.
Prosecutor General Rodrigo Janot said Petrobas, Brazil's largest company, must be carefully scrutinized while its operations are made more transparent, Reuters noted.
Petrobras is at the center of Brazil's biggest corruption and money laundering scandal as federal prosecutors prepare to indict 11 executives at six of Brazil's largest engineering firms for paying billions of dollars in bribes, Bloomberg reported.
Two former Petrobras directors are among the two dozen people arrested for their involvement, Bloomberg noted.