Petrobras selling its assets in Argentina; YPF one of the interested companies
Brazil's state-run oil company Petrobras is putting its Argentine assets up for sale and will start accepting bids from interested buyers as early as this week, Buenos Aires newspaper La Nacion reported Friday.
Petrobras has hired Scotiabank Brasil to handle the sale, and talks have been held with four Argentine oil companies: state-run YPF SA, Tecpetrol, Pluspetrol, and Bridas, La Nacion said, citing local oil executives. A Petrobras spokesperson declined to comment on the report.
Petrobras possible sale of its operations in Argentina--which are largely held by its Petrobras Argentine SA subsidiary--would mark an abrupt change in the Brazilian energy giant's international strategy.
In April, Petrobras Chief Executive Maria das Gracas Foster said the company would continue to invest in Argentina, though developing ultra-deepwater fields found off Brazil's coast is a top priority.
Petrobras Argentina sold a refinery and gas stations to an Argentine investor almost two years ago, and today its assets include a stake in an electric utility as well as oil and gas fields.
Petrobras Argentina share price has cratered this year after Argentine President Cristina Fernandez nationalized YPF in April. Its shares in New York fell 5.3% to 4.83 dollars on Thursday, giving the company a market capitalization of about 1.33bn. The shares stood at a 52-week high of 8.62 in January.
Argentina has proven a difficult market for foreign energy companies due to government policies aimed at keeping domestic oil and gas prices low for consumers and industry. Oil and gas exports are subject to steep export taxes, and up until recently gas prices were capped at levels well below international rates.
President Cristina Fernandez administration recently more than tripled what her government pays YPF for new natural gas production, raising the price to 7.5 dollars per million British thermal units, in a move that signals greater willingness to offer higher prices to attract badly needed investment in Argentina's vast shale gas and oil deposits.
Suggested Stories
-
May 20th 2013
Brazil trapped by Argentina and Venezuela economic mismanagements
-
May 16th 2013
Chevron agrees to invest 1.5bn dollars in developing YPF shale field in Patagonia
-
May 21st 2013
Falkland Islands: it’s a three-side debate; Argentina must recognize Islanders right to decide their future
-
May 21st 2013
Argentines expect inflation to average 34.9% in the next twelve months
55 comments Feed
Note: Comments do not reflect MercoPress’ opinions. They are the personal view of our users. We wish to keep this as open and unregulated as possible. However, rude or foul language, discriminative comments (based on ethnicity, religion, gender, nationality, sexual orientation or the sort), spamming or any other offensive or inappropriate behaviour will not be tolerated. Please report any inadequate posts to the editor. Comments must be in English. Thank you.
The fewer foreign interlopers in our strategic resources the better.
If you actually had the competence, equipment and finances to develop them effectively yourself that would be somewhat accurate.
Invest in Argentina and risk having your assets seized on the whim of a madwoman....or invest just about anywhere else in the world...
However, Noble, EDF, Edison , Premier all joined the Falklands exploration and development in 2012.
It will be interesting to see which generates greater returns over the next decade, Argentinas famed “shale oil” or the Falkland Islands reserves.
Cristina your ship is making water so I scuttle scuttle scuttle
Chuckle chuckle chuckle
“@3 really we'll see when you go bust you'll sell your arse for a beer. Perhaps the Falklands will buy it that will be good”
What a gem of a Saturday night post from such a genuine jolly jack.
“Les Goddams” spirit is well and alive in leading hand slattzzz, I can see....
It would be better really if you had a perspective on this, yet another company abandoning Argentina and this time one of your so called closest friends. Cruise ships refusing to port with you, numerous international trade disputes, inflation sky high, assets seized abroad, reserves depleating to pay your debts, a pathetic excuse of a navy with rusting ships you cant afford to float, unable to export your products, no manufacturing base, infrastructure tired and ageing, no means to access your own energy sources, crime murder rife. I could go on.
You wouldn't want to be Argentine right now, they have absolutely nothing to be proud of as a nation and they wonder why Falklands won't touch them with a shitty stick!
.“ You can't have it”
Neither can you if you can't raise the investment to extract it.
Shale oil is not an easy resource to extract-hence why most of the world have not bothered till now-still I am sure that when the blue and white flag with the smiley emoticon sun on it, is stuck in the ground the shale oil reserves will yield straight away at the sound of CFKs orders, as if by magic.
“You wouldn't want to be Argentine right now, they have absolutely nothing...”
Oh, and you are who to arrogate upon yourself the right to elevate this sweeping, unsubstantiated, tendentious statement to apodictic status?
Who are you, again?
The scope of the hypocrisy is illimitable.
@19
But it will, and better yet, it will be performed when the technology is refined and fracking does not create a partial to complete destruction of the ecology in the land above.
That is what is ocurring in the United States. The latest soil samples indicate a seeping of toxins and other substances from this extraction procedures, and their fields lie within some of the most important agricultural lands in that country. Admonitory warnings have already been made by many scientists about this incipient environmental crisis.
Can't refute any of it can you? That's how I like you antis. Silent and nonplussed.
Brasil.....one place, one world!
My country achieved more civilization in 80 years than yours in the first 1000. And you had the Romans who built everything for your, from roads to forts to even public baths for everyone, and yet you retrogressed to the stone age for at least 600 years after their departure.
Make sure you don't throw stones from your friable papyrus abode.
I really am not convinced that Cristina will be able to access that large reserve of natural gas alone, and I doubt she can convince enough companies to cooperate. Scaring away investors with unpredictable behavior, and counter productive trade practices (restrictions, corruption) is a sure fire way to make sure the job won't get done.
Please can you create a list of what Argentina has contributed to civilisation. I will accept any significant inventions, medicines, technological advancements, pharmaceuticals, any significant contributions to peace, any significant acts of benefit to humanity. Any Argentine you like in the past 200 years.
Nothing immediate springs to mind...
Then, without any particular thought do the same for the two countries you profess to despise, the UK and the US.
Compare the lists.
I am not interested in comparing the British Empires failings with the Genocidal Argentine conquistadors or the US behaviour in Vietnam or the Middle easts...just positive contributions to civilisation and humanity.
See what you come up with.
I will do some research and get back to you (and I hate also Europe, China and others).
“and I hate also Europe, China and others”
Yes, I would to see your list of hates too.
I've been to China, and North America. You're not in a position to say anything vulgar or offensive about them if you haven't bothered leaving your hovel to see the world for yourself. Don't be a racist uncultured pig. They are nice places if you see them for yourself without actively looking for reasons to hate them over the internet, those poorly written newspapers, or listening to other uncultured retards with no worldly experience.
I only reciprocate the antipathy and rancor directed at my country and its people. And how exactly do YOU excuse their rights to express themselves in the way they do, when most of them have never set a foot on this country, much less interacted in any meaningful fashion with its inhabitants??
Oh that's right, they “base”and inform their entirely warped beliefs about Argentina on what they read in websites like this one, or from crude extrapolations of the people through interpretation of the actions of the government, or from aspersions and cheap, unsubstantiated hearsay that is bruited about by those with personal animus against us.
So why can't I form my own opinions upon their conduct and demeanor in this website and others?
I'm am jaded and nauseated by the abuse the “travel” excuse. This poor debating alibi is no more valid (or perhaps playing Devil's advocate, just as legitimate), than me avering that “none of you can read or listen to German, French, Portuguese, Spanish television... ergo, I have a deeper understanding and insight into the quiddities of these cultures, so what I say about them is true”.
Cannot have it both ways.
Why do you always deflect your actions and words. Own them. Take personal responsibility for them.
You announced you are to spend your long vacation posting on message boards. What a waste of a young life. Go out and intern somewhere, get some work experience, or volunteer, or travel. I know you have said you don't have much money but you can do all those things for very little money. It would open your mind and show you that the world is not against you. It is your isolation that has poisoned your mind.
Well, don't let me keep you from watching soap operas in six languages. It does explain your use of over-dramatic language to make a simple point.
Actually I would be more interested to hear why you think Petrobras are pulling out of Argentina. Why do you think this is please, in your ever so educated opinion?
One of the companies that has been friendly to Argentina and the major player in SA markets suddenly leaving, it wont just be a loss in revenue but also a loss in development, technology and all of the advancements that could of come with it.
Anyone suggesting this is a good thing is utterly bonkers.
At this moment Petrobras has as a priority the exploitation of their pre-salt deepwater oilfields and will need a great deal of money to carry this out, it is obvious that the best idea is to get out of a country that doesn't understand the rule of law, and put the realised capital into their priority project. A win-win situation... for Brazil!!!
For Argentina I think that this will be like the run of the lemmings in Scandinavia, the beginning of the end!!!!
Did you actually watch the video you linked to? Are you proud of what was in it?
The fighting between small children, notice the one in green attempting to pull a weapon out of his waistband and the pretend fighting of the adults. You can see where the violence of shanty towns comes from, can’t you.
I should stick to Brasil and Portuguese, English is too reserved for you.
No wonder that FIFA are beginning to see why most of the world were amazed that Brazil were given the Football World Cup. Bit of a no-brainer really, seeing as most of the thugs in Brazil have no brains anyway.
They still had enough brains not to give to England... lol. Brazil, Russia, and QATAR over the UK?
Ouch.
So why do you think Petrobras are pulling out of Argentina?
As Big Oil is either (a) wont and habituated to fleece the denizens of your countries (the rich ones) by effectively creating their own taxation code through the covert lobbying of you venal political class, or (b) accostumed to having the purview to deracinate local tribes and subsequently destroying the ecology of poor nations, I would conjecture they expected the same scenario to unfold here.
Since we in Argentina don't permit the oil companies a carte blanche, neither to depredate our ecology nor to trample on our citizenry, this denouement is not astounding or surprising.
China moves in
Watch it happen.
I think Petrobras have seen the way Ecuador is tying up Chevron through the world's civil courts.
Shale gas/oil extraction and processing is so polluting that it would be a crazy foreign national extraction company that placed itself at the whim of a commercially crazy nation that is running out of money.
China needs to be sufficiently crazy in order to fund and fuel its huge needs. It also has the commercial belligerence and clout to sort out any crazy nation that tries to change the rules of the game.
It has just struck me, you are getting yourself in a position to take FatBoys / Cokeheads R Us job at La Camping it up.
Yes, they need some-one who can talk intelligibly if not intelligently. Fingers crossed you get it.
I may not do it often, as I am still practicing, but when I do it is undeniable it is a beauty to read such eloquent redacting.
Do you place any value in your OWN language?
You win that one, but you did not deny the point of the post, watch out, it's sharp!
Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!