SAO PAULO - 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.