Seeking Alpha

Petrobras defends Pasadena refinery purchase

  • Petrobras (PBR -4.4%) CEO Maria das Graças Foster defends the 2006 decision to buy a refinery in Pasadena, Tex., against allegations the company had dramatically overpaid, telling Brazil's congress it purchased the 100K bbl/day refinery to maximize returns on heavy Brazilian oil in the U.S. market.
  • Opponents of Pres. Rousseff are pushing for a formal investigation into the $1.2B purchase, which they say was made for 20x the true value of the refinery.
  • The figure comes from the $42.5M Belgium's Astra Oil supposedly paid for the refinery in 2005, but Foster says Astra actually paid $360M.
  • Foster also reiterates Rousseff's recent claim that the approval of the 50% stake purchase by Petrobras' board was based on a faulty report from a former executive who was subsequently demoted.
From other sites
Comments (3)
  • saratogahawk
    , contributor
    Comments (2427) | Send Message
     
    I don't claim to know the true value of this refinery but this differential at first blush is interesting. I would like to know more. Sure am glad I don't own PBR right now.
    15 Apr 2014, 11:46 AM Reply Like
  • Philip Marlowe
    , contributor
    Comments (1201) | Send Message
     
    I very much doubt anyone can get a working 100k bbl/day refinery for 40 million dollars.
    15 Apr 2014, 12:13 PM Reply Like
  • Capt Jack Daniels
    , contributor
    Comments (1427) | Send Message
     
    They overpaid by how much ?

     

    Please tell me they are not shipping that gas back to Brazil.
    15 Apr 2014, 12:14 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs