Petroleo Brasileiro SA’s chief executive quit on Friday in a surprise move that wiped some $12 billion off the state-controlled oil producer’s market valuation, after Brazil’s government responded to a trucking strike by intervening in the company’s fuel pricing policy.
If it looks like a duck, swims like a duck, and quacks like a duck, it’s probably a duck. And right now, this duck is looking a lot like an oil shock:
The Brazilian government expects to rake in 6.8 billion reais ($1.89 billion) through the so-called fifth round of bidding for stakes in the country’s choice pre-salt offshore oil play, the government said on Friday.
Oil major BP Plc is closely following oil auctions in Brazil and Mexico, which are expected to announce new awards later this year, to decide whether to submit bids and expand its presence in the region, Felipe Arbelaez, the firm’s chief for Latin America, said on Monday.
Petrobras oil production in Brazil in March totaled 2.07 million barrels per day on average, or 0.8 percent less than reported in February, due mainly to maintenance work at its Cidade de Angra dos Reis oil rig located in the Lula field, the company said.
In January, Brazil made a surprise announcement, ending its mega-dam building policy after years of pushing ahead with controversial projects such as the Belo Monte dam (the world’s third largest), and the Tapajós Complex.
Videocon Industries Ltd plans to raise as much as Rs30,000 crore by selling its stakes in oil blocks in Brazil, as part of the debt-laden company’s plan to repay bank loans.
India’s Sterlite Power Transmission has won a contract to build 1,800km of power lines in northern Brazil, beating out international competitors to make what it claims would be the largest investment in Latin America by an Indian company.
Foreign energy companies dominated a power-line auction in Brazil as the country seeks to expand its infrastructure to support new power plants.
French energy group Engie SA , Spain’s Elecnor , India’s SterlitePower Grid and Brazilian company Neoenergia SA were among winners in a government auction of licenses to build power transmission lines in Brazil.