• 3 minutes China's aggression is changing the nature of sovereignty.
  • 8 minutes Will Variants and Ill-Health Continue to Plague Economic Outlooks?
  • 11 minutes Europe gas market -how it started how its going
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 10 hours Russia, Ukraine and "2022: The Year Ahead"
  • 10 hours January 23rd - Washington D.C. and Brussels - Demonstrations Against Tyranny
  • 2 days Following the Big Money
White House Ready To Deploy Tools For Oil Price Control

White House Ready To Deploy "Tools" For Oil Price Control

The Biden administration stands ready…

Brazilian Bank Gets $5.2 Billion From Petrobras Stake Sale

Brazilian lender BNDES sold a stake in Petrobras for $5.2 billion, Reuters reports, and plans to pay part of the proceeds as dividends to the Brazilian Treasury.

The sale followed a secondary offering of shares by Petrobras, announced in January. The offering, of almost 612 million shares, was expected to raise $4.62 billion (19.6 billion reias) for the oil major, with the development bank allowed to sell another 122.37 million shares worth some $920 million. This, according to the securities filing from January, could see BNDES raise up to $5.54 billion.

This is the biggest share sale that Petrobras has organized since 2010, Bloomberg noted in a report on the offering announcement, and the company is much more attractive for investors right now. The company broke its oil production record last year, pumping more than a billion barrels for the first time in its history.

Brazil’s crude oil production topped 3 million barrels per day for the first time ever in November 2019, the ANP reported last month, adding that total oil and gas production rose to 3.95 million barrels of oil equivalent daily - also a record-breaking figure.

Petrobras is also doing a lot better financially. It has divested from a lot of non-core operations, has stopped subsidising low prices at the pump, and has doubled cash from operations.

The company also recently agreed on a $9-billion payout from the Brazilian government that settled their dispute over the so-called transfer-of-rights area in the presalt zone that will finally allow Petrobras to proceed with developing the significant oil resources in that area.

“It’s a very different moment for Petrobras,” said a Brazilian asset manager as quoted by Bloomberg. “Back then, the market was willing to write the company a blank check to invest billions of dollars in what was essentially a crapshoot. Today, we know the pre-salt is profitable and that exploration costs are among the most competitive in the world. The company has unloaded debt, and more divestments are coming.”

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News