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By Sabrina Valle

(Reuters) –     Brazil’s state-controlled oil co*pany Petrobras will distribute at least twice as much as the biggest international oil producers in second quarter dividends, boosting the government’s coffers amid a tense presidential campaign.

The five biggest Western oil producers – Exxon Mobil Corp, Chevron Corp., Shell PLC, TotalEnergies and BP – posted record cash distributions to shareholders in recent days between $4 billion and $7.6 billion. But none came close to Petrobras’s $17 billion payout.

Graphic: Petrobras leapfrogs Oil Majors in dividend payouts, ht**://graphics.reuters.c**/PETROBRAS-DIVIDENDS/klpykyxxopg/chart.png

Brazil’s government, which controls the producer with a majority of its voting shares, last month asked Petrobras and other state-controlled co*panies to increase dividends to finance extra federal spending.

The cry for help came as the government of President Jair Bolsonaro, who later this year faces a tough reelection battle, last month bypassed a constitutional spending cap to finance a massive cash transfer program popular among low-inco*e voters.

Petrobras will distribute about 60% more to shareholders than its $10.5 billion (54.33 billion reais) profit. Critics said the huge payout will lead to underinvestment in the business.

Petrobras’ dividends were less than at Saudi Arabia’s state-controlled Saudi Aramco, the world’s largest oil co*pany, which produces 13 million barrels of oil equivalent per day (boed), almost five times more than Petrobras. 

Saudi Aramco has been distributing $18.76 billion to shareholders per quarter. Its next dividend will be disclosed on Aug. 14.

U.S. producer Exxon, which posted the highest quarterly profit of the five, spent $7.6 billion on shareholder distributions.

Bolsonaro is trying to boost his re-election chances by ramming through short-term spending measures, critics say. Polls show he is lagging leftist former President Luiz Inacio Lula da Silva.    Dividend payments will be made by Petrobras before the first round of voting, scheduled for Oct. 2.

On a webcast last week, Petrobras executives said the extraordinary dividend payment does not affect the co*pany’s investment plans. Petrobras expects to retain between $8-10 billion in cash this year and reaffirmed a co*mitment to distribute at least 60% of its free cash flow to investors.

“It is our understanding that this is the best cash allocation for the co*pany’s cash,” Chief Financial Officer Rodrigo Araujo told reporters.

(The story corrects headline. Dividend payouts rose over 100%, not 50%.)

(Reporting by Sabrina Valle; Editing by Nick Zieminski)