Petrobras' (PBR) latest investment plan outlining a whopping $236B in spending over the next...

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saratogahawk Comments (973)
 
I find little of this plan offering realizable growth. Essentially no growth for the next 2+ years in production. Beginning in 2014 they project growth restarting so the development activities for that projected growth "must" all work with no hitches. Campos Basin production is flat to slightly down indicating that PBR does not know how to develop a broad areal basin with multiple productive zones. Their assault on Chevron is likely to freeze some of their relationships with other E&P and equipment suppliers due to the potential liability exposures. The local content requirements will likely result in the failure of Sete to meet its contracts for delivery of offshore drilling rigs. Looking at the difficulties of procuring the size drill fleet desired by PBR I don't think any supplier could meet those objectives let alone Sete as a totally inexperienced locally created new management entity. To me this is a recipe for disaster and will almost assuredly result in PBR's failure to meet the 2012-2016 business plan objectives. PBR's best bet to do that is to drop Sete and buy a major driller with a current fully equipped fleet. Far better use of their money than trying to build it all up from the ground. Even with Keppel Brazil working at full tilt they won't be able to build and certify sufficient equipment to meet this plan. I am not shocked merely disappointed that once again PBR will fall well short of its goals.
17 Jun 2012, 01:55 PM Reply Like

saratogahawk Comments (973)
 
PBR reports a oil leak from its operation in the Gulf of Mexico. Lets see Brazil hit Chevron with a proposed $20 billion penalty and large potential criminal penalties for a small leak offshore Brazil. Maybe the US ought to hit PBR for $20 billion and criminal charges for its executives for this leak. Seems only fair.

http://bit.ly/NIbWlt
17 Jun 2012, 02:12 PM Reply Like

Cincinnatus Comments (2263)
 
Obama ought to play hardball with Brazil and use this to force them to back down from their attacks on Chevron and Tranocean, but he won't as he has no interest in defending American businesses or American interests.
18 Jun 2012, 08:46 AM Reply Like