« Bitter Fallout Of Brazil Ethanol Boom | Home | In US Farm Belt, Ethanol Plants Hit Resistance »
Petroleo Brasileiro SA - Petrobras
By Mr Ethanol | November 13, 2007
Briefing:
State oil company Petroleo Brasileiro - Petrobras is the de facto monopoly in Brazil. But unlike other NOCs (national oil companies), Petrobras not only has access to reserves, but the ability to monetize those assets as well.
After the 1997 market regulation the company shed its Petrosaurus moniker and took advantage of the pros and cons of being a monopoly. The strategy paid off, as Petrobras partnered with nearly everyone and becoming the incumbent of choice for new entrants. As a result, the company has garnered a high level of technological expertise, particularly in deepwater drilling, in both upstream and downstream markets.
Unlike its Russian and Chinese peers, Petrobras has much less governmental influence to deal with. Operating with a Board of Directors, PBR is guided by fiduciary responsibilities, acts independently, and evaluates projects based on economics. Still, PBR trades at a discount to its global peers due to expected political influence despite attractive organic growth rates.
The company has laid out an aggressive investment plan for 2007-2011 of $87 billion. It has 8 major production projects coming on stream this year, increasing potential for positive new flow. PBR has proven reserves of 11.7 billion boe, ranking 7th in the world. It aims to double oil and gas production over the next decade. More.
Related Posts
- Petrobras, Samsung Sign Initial Pact On Ethanol - Yonhap
- Brazil’s Petrobras Made First Ethanol Shipment To US
- Ethanol Sales To Exceed Gasoline In Brazil By 2020, Petrobras To Shrink Oil Business To Focus On Biofuels
- Petrobras Creates Biofuels Unit
- Petrobras Creates Biofuel Subsidiary
- Petrobras To Invest In 20 Ethanol Mills By 2012
- Brazil Moving Its Ethanol
- Japanese Refiners To Push Biofuels Use By 2013
- Cheaper Ethanol Outselling Gasoline In Brazil
- O Combate Etanol X Butanol
New Way Of Making Easy Money Online