Petrobras' (PBR) worst debt situation in a decade may be boosting the chances it will step aside...

Petrobras' (PBR) worst debt situation in a decade may be boosting the chances it will step aside and let Exxon (XOM) and Shell (RDS.A) buy offshore exploration licenses in Brazil's upcoming first-in-six-months auction, Bloomberg says. XOM is said to have been the most active in requesting data about the acreage Brazil is offering next month to take advantage of PBR holding back.

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Comments (4)
  • Lake Investor
    , contributor
    Comments (198) | Send Message
    Tread carefully. Brazil tried to levy a fine in the tens of billions of dollars against Chevron for a 2,000 barrel leak. One little mishap and they own you. I would do everything through a subsidiary if you are going to invest in Brazil. I would also extract concessions in the contract to prevent the crazy regulator actions. There are a lot of places wanting big investments in oil right now from Russia, Iraq, Mexico, Brazil and Africa. Get assurances and contracts that you can enforce in international tribunals.
    12 Apr 2013, 06:44 PM Reply Like
  • Sunshine123
    , contributor
    Comments (1170) | Send Message
    I totally agree with Lake Investor. Right on.
    12 Apr 2013, 08:16 PM Reply Like
  • mpbosua
    , contributor
    Comments (8) | Send Message
    Exxon and Mobil both entered the Brazilian market in 1959, They know there way around. ExxonMobil withdrew from Marketing in Brazil several years ago and sold the Marketing operations to Cosans, They have withdrawn from most of South America. I would be surprised if they jumped back in, as it is an insiders market and there are better places to invest their money.
    13 Apr 2013, 06:09 AM Reply Like
  • aeropater
    , contributor
    Comments (12) | Send Message
    The mind set in Brazil makes any foreign investment extremely risky.
    14 Apr 2013, 09:06 PM Reply Like
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