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Brazil police arrest another former Petrobras exec in probe

SAO PAULO (Reuters) - Brazilian police arrested Jorge Zelada, former head of Petrobras' international division, as part of an ongoing investigation into bribery and corruption at the state-run oil producer, prosecutors said on Thursday.

Zelada is suspected of money-laundering, appropriating public funds, corruption, tax evasion and contract fraud. He was taken into custody early Thursday as part of the graft probe centred on PETROBRAS (APBR.82)(PETR3.BR)(XPBR.MC)(APBR.82)(PETR4.83)(PETR3.BR)that has already ensnared dozens of Brazil's top executives.

Prosecutors said Zelada, who led the international division from 2008 to 2012, was suspected of receiving bribes on a drillship contract with Vantage Drilling Company, which is based in Houston. A call early on Wednesday to Vantage's office in Houston went unanswered.

According to a police statement, the 15th phase of the investigation, dubbed "The Monaco Connection," led to search and seize warrants for three other suspects, though none were named.

Zelada is suspected of hiding some 11 million euros received through bribes in Monaco, prosecutors said in a statement.

He is the fifth ex-Petrobras executive implicated in the 16-month old investigation and the fourth to be arrested.

(Reporting by Asher Levine and Caroline Stauffer; Editing by W Simon)

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