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A Brazilian federal prosecutor launches his second 20B real lawsuit ($10.9B) against Chevron...

A Brazilian federal prosecutor launches his second 20B real lawsuit ($10.9B) against Chevron (CVX) and Transocean (RIG) relating to an oil leak in Chevron's offshore Frade field (earlier). The new suit also seeks to prevent the two companies from operating in Brazil, transferring profits or equipment from the country, and obtaining government financing.
Comments (10)
  • bigazul
    , contributor
    Comments (963) | Send Message
     
    It is called the Venezuelan model of oil exploration. Isn't Marxism awesome?
    3 Apr 2012, 05:49 PM Reply Like
  • HoeTamer
    , contributor
    Comments (186) | Send Message
     
    Didn't Obama bankroll the Brazilian exploration? We are going to be their best customers. It seems another novel way to extort money from big oil. Is Brazil really a third world country again?
    3 Apr 2012, 05:56 PM Reply Like
  • April May
    , contributor
    Comments (521) | Send Message
     
    This is disgusting. We should NOT trust these countries run by dictators/ tyrants! The oil companies should have known better, especially after the gulf spill here. At least the US allows more fair restitution and/or access to courts.

     

    I'm not saying they should not pay for damages, but this is ridiculous!
    3 Apr 2012, 06:02 PM Reply Like
  • dick roberson
    , contributor
    Comments (61) | Send Message
     
    There are not many Chevron energy companies around the World that a Country like Brazil needs to develop their offshore natural resources. A win/win arrangement should extend beyond every
    stage of a successful project even when unforunate results get in
    the way. The prosecutor is in a dangerous position of losing future
    involvement by foreign capital and expertice. Good advice would be for him to reconsider where his actions are going.He may lead their giant development partner to go elsewhere and leave them with their lack of experience in major offshore projects.
    3 Apr 2012, 06:06 PM Reply Like
  • macmahonmexca@yahoo.ca
    , contributor
    Comments (5) | Send Message
     
    Can someone (maybe "Seeking Alpha") please tell me what percentage of CVX's net earnings per share are delivered by it's Brazilian operations? I'm NOT interested in political comments; just money factors! The market is telling us that this is for real, like it or not. Does anyone know?....please!!
    3 Apr 2012, 06:06 PM Reply Like
  • smurf
    , contributor
    Comments (3786) | Send Message
     
    mcmahon,

     

    Being long CVX, I would like to know that, also. I wouldn't know where to begin. How about a little research?

     

    In the meantime, a political comment. This is typical third world mentality. If the Golden Egg goose hasn't already been killed, it's surely being tortured.
    3 Apr 2012, 06:32 PM Reply Like
  • Herr Hansa
    , contributor
    Comments (3079) | Send Message
     
    In the 2010 Annual Report: "Aside from the Tengiz Field in the TCO affiliate, no
    single property accounted for more than 5 percent of the
    company’s total oil-equivalent proved reserves. About 25
    other individual properties in the company’s portfolio of
    assets each contained between 1 percent and 5 percent of
    the company’s oil-equivalent proved reserves, which in the
    aggregate accounted for 49 percent of the company’s total
    oil-equivalent proved reserves. These properties were geographically dispersed, located in the United States, Canada,
    South America, West Africa, Asia, and Australia."

     

    In other words, it is unlikely to be more than 5% of reserves, and more likely quite less. The bigger deal in this is continued production in Brasil, and investment by other companies. I suspect that either a settlement will happen, or the government will make some sort of a deal. No one wants pollution, and many want responsible oil production, but Brasil's economy is tied to oil production, so I don't expect anything crazy, despite one very adamant prosecutor.
    3 Apr 2012, 06:55 PM Reply Like
  • Texbuz
    , contributor
    Comments (15) | Send Message
     
    All but one of my Brazilian stocks are now at the top of my Sell List
    3 Apr 2012, 07:13 PM Reply Like
  • olddoc74
    , contributor
    Comments (198) | Send Message
     
    The Brazilian prosecutor may be attempting to build his image and career, but it is unlikely that the rest of the administration is foolish enough to drive out the only companies that can produce their oil. Probably, sense will prevail and some settlement be arrived at that preserves a profitable and necessary relationship. Without foreign help, there is no way Brazil will ever realize the potential of their deep water resources. Whatever the outcome, the prosecutor has seriously damaged Brazil's relationship with would be investors. He is a fool.
    4 Apr 2012, 12:17 AM Reply Like
  • Disenchanted
    , contributor
    Comments (166) | Send Message
     
    Brazil has PBR, an oil company among the top five in the world. PBR has discovered major oil-fields off Brazilian coast, and continue to find more. The company has leased a majority of deep-water drilling rigs long term to get to those oilfields. Do they need other major players in the area? The Brazilian govt. has a lot of say in that company. If all other major players are being scared away, PBR can replace them in no time. Deja Vu Venezuela drama.
    4 Apr 2012, 02:31 AM Reply Like
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