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Monday, Oct 21
Repsol drops out of today's Libra auction
- Repsol (REPYY, REPYF) is the latest oil major to say it won't participate in today's auction for exploration and production rights to Brazil's huge Libra oil field.
- Repsol had considered making a bid through the Brazilian joint venture it owns with China's Sinopec (SNP).
- Major major oil companies declined to participate, worried that government rights to dictate investment and development decisions will turn the tens of billions of dollars needed to explore and develop Libra into a loss; remaining bidders are dominated by Chinese and other Asian state oil companies.
- The auction has been criticized by many Brazilians concerned that the country's wealth is being handed over to private-sector companies; Brazil's government deployed more than 1,000 troops around the Rio de Janeiro hotel where the auction will take place.