Petrobras shares rise on report Brazil government to pay oil company $14 bln

SAO PAULO, Jan 7 (Reuters) - Common shares in state-controlled oil company Petroleo Brasileiro SA rose 5.5 percent to 29 reais in Sao Paulo after Brazilian newspaper Valor Economico reported the government will pay $14 billion to the company to settle a dispute about the so-called transfer of rights area off the Brazilian coast.

Petrobras, as the company is known, and the Economy Ministry did not immediately reply to requests for comment. (Reporting by Tatiana Bautzer; editing by Grant McCool)