UPDATE 2-Petrobras shares jump after capitalization plan

* Brazil's Petrobras shares slip early then rebound

* Capitalization plan details released late Wednesday

* Gov't to charge $8.51/barrel for oil in share swap plan (Updates prices, adds ticket symbols)

RIO DE JANEIRO, Sept 2 (Reuters) - Shares of state-controlled oil company Petrobras (PETR4.SA) (PBR.N) rallied on Thursday, a day after the government announced the details of a $43 billion oil-for-shares swap linked to a stock offering expected this month.

The stock was volatile in the early session, opening lower before gaining as much as 4 percent. The stock pared those gains to trade up 1.44 percent at 27.42 reais in the early afternoon. Its New York-traded shares were up 1.4 percent at $35.56.

The government announced late Wednesday night that it will charge Petrobras $8.51 per barrel for crude reserves to be used in a $43 billion oil-for-shares swap. For details, see [ID:nN01187399]

Finance Minister Guido Mantega said the government will trade 5 billion barrels of oil for company shares in an operation linked to a stock issue for private shareholders that the company has said could raise up to $25 billion more in cash.

While the oil price was higher than the $5 to $6 per barrel that markets had been hoping for, it was still better than $10 or more that some speculation had centered on.

The capitalization plan is intended to speed the tapping of offshore oil reserves deep below a thick layer of salt -- making extraction a technically tricky, and therefore expensive, proposition.

Petrobras shares have taken a beating this year over uncertainty around the plan. The preferred shares had fallen 25 percent this year through Wednesday's close.