Tag Archives: Petrobras

Petrobras Sells $11 Billion in Bonds: Highest sale ever in Latin America

Energy, , , , ,

On Monday, Brazil’s powerhouse state-run energy firm Petroleo Brasileiro SA (Petrobras) unloaded $11 billion of global debt in what’s been reported as the largest bond offering by a Latin American company in history. The deal was split six ways, with maturities ranging from 3 to 30 years, of both fixed-rate debt and floating-rate debt. According to inside sources, investors made bids as high as $50 billion for the bonds, demonstrating a strong demand for these types of high-rated emerging market companies.

Petrobras confirmed that it has already received more than half of its $20 billion goal this year, which will be slated for investment in oil production and expanded exploration in the near future. The Brazilian oil firm also announced it has plans on spending $237 billion over the next four years in what many analysts say will be the largest corporate investment plan by a single company in the world.

The last time Petrobras sold debt, in February 2012, the company raised $7 billion, which by all standards was still a significant achievement. They did this by offering bonds comprised of four different maturities, in a similar spit as their most recent venture this Monday. With this move, timing is everything. Petrobras is also expected to participate in a Brazilian oil and natural gas rights auction later this week, putting it in a great position after Monday’s bond sale.

 

This latest deal was facilitated on a massive scale by many of the world’s top financial institutions, including the Bank of America Corp., Banco do Brasil SA, Citigroup Inc., HSBC Holdings PLC, Itaú Unibanco Holding SA, JPMorgan Chase & Co., and Morgan Stanley & Co. The sale also had an effect on the global currency market, driving up the value of the Brazilian Real, increasing 0.6%, and making the only positive motion against the dollar by a major currency. The Real is rallying on speculation Petrobras will exchange some of the money it raises from Monday’s bond sale into local currency.

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Petrobras' net income in 2010 sets record high

Energy, , ,

Petrobras’ CFO and Investor Relations officer, Almir Guilherme Barbassa, announced the Company’s financial and operating results for the 4th quarter and fiscal year 2010 yesterday at their company headquarters in Rio de Janeiro. The net income increased 17% over 2009, and the EBITDA reached R$60 billion 323 million. Total oil & natural gas production was up 2% over 2009, averaging 2,583,000 barrels per day.

The proved reserves closed the year at 15.986 billion barrels of oil equivalent (boe) by the SPE/ANP criterion. The Reserve Replacement Index (RRI) was 229%, and the reserve/production ratio stood at 18.4 years. Investments totaled R$ 76 billion 411 million, and were 8% above 2009, with a focus on increasing the oil and natural gas production capacity, on improving the refining park, and the natural gas infrastructure.

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Petrobras issues US$6B in Global Notes

Finance, Resources, , ,

Brazilian energy company Petrobras has concluded today a US$6 billion issuance of 5, 10, and 30 year notes in the international capital markets.

The transaction was the largest-ever corporate bond offering by a Brazilian company in the international capital markets, and the book was oversubscribed 2.5 times with more than 463 investors from the United States, Europe, Asia and Latin America participating, most of them dedicated to the high grade market.

The notes were issued by Petrobras’ wholly-owned subsidiary Petrobras International Finance Company (PifCo) and constitute general senior unsecured and unsubordinated obligations of PifCo that are unconditionally and irrevocably guaranteed by Petrobras. Pricing occurred on January 20, 2011.

Petrobras will use the proceeds of this multi-tranche offering to finance Petrobras’ planned capital expenditure under its 2010-2014 business plan.

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Energy firms invest $65 million in Bolivia gas well

Resources, , , , ,
Spain’s Repsol-YPF, Brazil’s Petrobras, France’s Total and Bolivia’s YPFB have invested $65 million to drill a gas well in the southern province of Tarija.

Located in a field Petrobras operates in southern Bolivia, the San Alberto 15 well has been fully drilled to a depth of 7,884 meters (25,850 feet), the Brazilian company said in a statement.

It added that San Alberto 15 is the first well to be drilled in the second development phase of the large San Alberto field.

The two-year project required investment of $65.3 million, half of which was provided by YPFB Andina, whose shareholders are YPFB and Repsol; 35 percent by Petrobras; and 15 percent by Total.

The companies now are completing the work of connecting the well to the San Alberto gas processing plant, a project that will require an additional investment of $10.5 million.

San Alberto 15 is expected to come online in the second half of December with daily output of 1.7 million cubic meters per day of natural gas.

Bolivia produces an average of roughly 40 million cmd of natural gas and ships most of it to Brazil and Argentina, with the San Alberto field one of the main sources of the exported gas.

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Brazil to build rigs for South American oil companies

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President Luiz Inacio Lula da Silva said Brazil now is capable of building oil rigs not only for state-controlled energy giant Petrobras but also companies in other countries, especially South America.

“We’re going to make rigs here for other countries as well,” Lula said Thursday during the inauguration of the P-57, an oil platform with a 180,000-barrel-per-day capacity that Petrobras is planning to bring online later this year.

The president said Brazil’s shipbuilding industry, which became one of the world’s largest in the 1970s but had been all but abandoned before he took office in 2003, has recovered once again and attracted foreign investment.

The P-57, a floating, production, storage, and offloading-type platform that cost $1.2 billion, was built by Brazilian shipyards with close to 68 percent domestic components.

“The platform’s hull was converted from the Island Accord oil tanker at the Keppel Shipyard in Singapore between October 2008 and March 2010,” Petrobras said in a press release.

The company added that the P-57 is the first in a new generation of offshore platforms that are to be used to develop massive reserves in Brazil’s pre-salt cluster, so-named because the estimated 80 billion barrels of oil equivalent that area may contain are located deep below the ocean floor under a layer of salt up to 2 kilometers (1.2 miles) thick.

If the most optimistic estimates prove correct, the pre-salt deposits – located in a 160,000-sq.-kilometer (62,000 sq.-mile) area – could translate into a nearly six-fold increase in Brazil’s current proven reserves of 14 billion barrels and transform the South American nation into a major oil power.

Lula recalled that Petrobras plans to invest close to $224 billion through 2014 – primarily to exploit those deepwater reserves – and therefore will have to commission numerous rigs and tankers.

“We’re going to build the hulls for eight more rigs in (the state of) Rio Grande do Sul. In the coming years, we’re going to build dozens of rigs and hundreds of support ships in the country,” Petrobras CEO Jose Sergio Gabrielli said during Thursday’s ceremony at the Brasfels shipyards in Angra dos Reis, southwest of Rio de Janeiro.