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Non-Tech : The Brazil Board -- Ignore unavailable to you. Want to Upgrade?

To: JimisJim who wrote (689)	2/8/2012 4:09:03 AM
From: elmatador	Respond to of 2504

Decision on the 21 rigs this week, said Gabrielli.

To: JimisJim who wrote (689)	3/27/2012 6:11:15 AM
From: elmatador	Respond to of 2504

reputed deal more closely linking OSX and Petrobras – a first between these two rivals, according to Brazilian newspaper Estado. Eike Batista: king of local content March 14, 2012 10:45 pm by Joe Leahy2 0 Things are hotting up for OSX, the oil services firm of Brazil’s richest man, Eike Batista. First came an order from London-based Kingfish Trading for 11 tankers. To be built at OSX´s shipyards, these will be leased to Brazil’s national oil company, Petrobras. But now comes a reputed deal more closely linking OSX and Petrobras – a first between these two rivals, according to Brazilian newspaper Estado. As the new Brazilian kid on the oil block, relations between Eike and Petrobras can be testy. Beyondbrics has heard former Petrobras chief José Sergio Gabrielli describe Eike’s group as just “a little company” while on the other side, Eike has not always been complimentary about Petrobras’s record on exploration in the decades when it had a monopoly on Brazil’s oil industry. But according to Estado, OSX is negotiating with Sete Brasil, a company in which Petrobras is an important shareholder, to build two drilling rigs worth $1.6bn for the oil major. If the deal happens, it will signal a warming of relations that have been marked by frictions in the past – such as when Eike poached executives from Petrobras according to Estado. Clearly Eike today has good reason to bury any differences he may have had with Petrobras. With the giant port and ship-building facility he is constructing at Açu, in Rio de Janeiro state, he will be in a prime position to take advantage of Brazil’s local content rules for the oil industry. These require that about 70 per cent of equipment used in the exploitation of the country’s giant offshore pre-salt oil fields be local made. And the biggest buyer will be Petrobras, the sole operator of the fields. Serving this business will be extremely lucrative. This from Credit Suisse: Pricing, margins, and local content commitment. At $66m per vessel, the [Kingfish] contracts to OSX are being priced at almost 2x what a Chinese yard would charge to build a similar vessel ($34m). In our view this bodes well for OSX margins even taking into account the higher costs of building in Brazil. Assuming OSX reaches its 15% EBITDA target margins, a simple DCF would suggest R$0.20-0.25/sh of value accretion. At the same time, we think this is very illustrative of the price the oil companies will have to pay to achieve high local content requirements in Brazil, given a tight supply-demand throughout the value chain. Local content? What’s not to like if you are the one taking advantage of it? For Petrobras shareholders, however, the costs are clear. Related reading:

To: JimisJim who wrote (689)	3/18/2014 10:33:49 AM
From: elmatador	Respond to of 2504

Brazil’s Pre-Salt Oil Output Hits 407,000 BPD 8 years after the existence of the reserves was officially announced, Petrobras said. It took 19 years in the Gulf of Mexico to exceed the 400,000 bpd level, the oil company said. Brazil’s Pre-Salt Oil Output Hits 407,000 BPD BRASILIA – Production at Brazil’s deepwater pre-salt oil fields in the Atlantic hit a record 407,000 barrels per day (bpd) on Feb. 20, state-controlled oil giant Petrobras said Tuesday. The production record was achieved at the 21 fields operating in the pre-salt area, which is estimated to hold vast reserves of light crude oil and natural gas at depths of up to 7,000 meters (22,950 feet), Petrobras said in a statement. The pre-salt layer is found beneath the sea floor and contains a gel-like deposit of salt that could be up to two kilometers (1.24 miles) thick. Production hit 407,000 bpd eight years after the existence of the reserves was officially announced, Petrobras said. The milestone was reached “in a shorter time than was needed to achieve this level at other important maritime production areas in the world,” Petrobras said. It took 19 years in the Gulf of Mexico to exceed the 400,000 bpd level, the oil company said. Petrobras eyes 1Mb/d pre-salt target by 2017 bnamericas.com

To: JimisJim who wrote (689)	1/21/2015 7:18:06 AM
From: elmatador	Respond to of 2504

Private equity circles Brazilian projects amid Petrobras fallout Joe Leahy in São Paulo Brazilian construction groups’ inability to raise finance for large-scale projects, after being caught up in the Petrobras corruption scandal, is creating unprecedented opportunities for private equity investment in oil, gas and infrastructure deals. Many of the country’s leading construction companies have struggled to access capital markets since state prosecutors alleged that they paid bribes to the state oil company and certain politicians in return for contracts. But private equity groups are claiming that the companies’ resulting capital shortages could force them to retreat from projects to build oil and gas facilities, airports and hydropower dams. “There will be a lot of projects for which construction companies simply won’t be able to bid,” suggested Antonio Bonchristiano, executive officer of GP Investments, one of Brazil’s largest private equity funds. He said GP Investments was planning to raise more than $2bn by the end of the year, for investment in infrastructure, real estate and other general private equity deals. Fernando Borges, the head of Abvcap, the Brazilian association of private equity and venture capital investors, argued that the withdrawal of construction firms would open up opportunities for all types of financial investors. “This creates a series of dislocations,” he said. Private equity fundraising in Latin America has remained resilient in spite of a slowdown in the region’s economies and most of the large international buyout firms are represented in Brazil. They are estimated to have raised about $8bn last year for investment in the region — the highest amount since 2011, according to Cate Ambrose, head of the Latin American Private Equity and Venture Capital Association. “Last year was a great fundraising year compared with previous years,” Ms Ambrose said Fears are growing over the systemic impact of the corruption scandal at Petrobras, Brazil’s state oil producer, as one of the construction firms linked to the allegations edges closer to default and the country’s credit rating comes under pressure. Continue reading?.?.?. By contrast, Petrobras has found that corruption allegations have effectively prevented it from raising new money on capital markets. Petrobras has in turn barred 23 of the Brazil’s largest companies from bidding for project work with it, pending further inquiries into the scandal. Until now, analysts had regarded the construction firms as power brokers in Brazilian infrastructure: controlling the market for investment, particularly in large government-led projects ranging from soccer stadiums for the World Cup and the Rio Olympics to airport projects, hydropower dams and roads. However, in the past month, one of the companies, OAS, has missed two debt payments, placing in jeopardy its involvement in an overhaul of São Paulo`s airport and the construction of the world’s third largest dam on the Xingu river in Pará. GP Investments’ Mr Bonchristiano said construction companies in Brazil had typically acted as investors as well as contractors, which give them control over large projects and reduced opportunities for other potential backers. “Construction companies were competitors of mine on infrastructure deals,” Mr Bonchristiano explained. Mr Borges of Abvcap did not think the homegrown private equity industry would have the capacity on its own to take over from construction groups, as many of the biggest infrastructure opportunities were too large. These projects seem more likely to attract larger sovereign wealth and foreign pension funds. Last year, Canadian Pension Plan Investment Board, a big fund, opened an office in São Paulo to invest in real estate and logistics properties. Singapore’s two investment companies, GIC and Temasek, also have offices in the city. Nevertheless, with Brazil’s economy stagnating and its currency depreciating against the dollar, some private equity firms see 2015 as a long-awaited opportunity to accumulate assets at more reasonable prices — after years of being frustrated by high valuations. “I don’t see this as a good time to think about exiting investments in Brazil, but it is a good time to think about investing,” said Mr Bonchristiano. Copyright The Financial Times Limited 2015. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web