Can Foreign Investment Help Petrobas Get Back on Track?
The most indebted publicly traded company, Petroleo Brasilero (NYSE:PBR), is looking for partners to help finance its projects ranging from northeast Brazil to Angola.
China Petroleum & Chemical Corp. and GS Energy are two companies the Brazilian-based Petrobas is recruiting to help take on some of the costs of building refineries to supply Brazil’s growing oil demand, reports Bloomberg. The company sold half of its African assets to Grupo BTG Pactual in an effort to raise cash for its new ventures.
Petrobas plans to spend $237 billion through 2017 as it looks to develop the ultra-deepwater Libra field, Brazil’s biggest discovery. Notoriously bad at predicting costs of these projects, the company is seeking foreign help to manage costs and help with refining knowledge after similar projects have seen their costs quadruple.