Chevron Corp., the U.S. oil producer operating the $3.6 billion Frade oilfield off the coast of Brazil, was blocked from drilling in the South American country while the government probes a recent spill.
A “reasonable price” for Petroleo Brasileiro SA to pay for offshore oil reserves it’s planning to buy from the government in exchange for stock would be $8 a barrel, said Haroldo Lima, head of Brazil’s petroleum regulator.
The following companies had unusual price changes in Argentine trading. Stock symbols are in parentheses and share prices are as of the close in Buenos Aires. The Merval Index slumped 3.6 percent to 2,905.54.
Vale, the world’s largest iron-ore producer, releases second-quarter earnings results after the Sao Paulo market close. The mean estimate for net income by five analysts surveyed by Bloomberg was 10 billion reais as of yesterday.
BP Plc’s oil spill in the Gulf of Mexico is prompting Brazil to take a “cautious approach” before deciding on the company’s purchase of Devon Energy Corp.’s deepwater blocks, the head of the petroleum regulator said.
Petroleo Brasileiro SA ’s $25 billion share sale may be delayed as Brazil’s state-run oil producer and the government negotiate the financial terms for a related oil- for-stock swap, said two officials familiar with the matter.
Brazil said its Libra field may hold “gigantic” reserves of as much as 15 billion barrels, almost twice initial estimates, which would make it the biggest discovery in the Americas in more than three decades.
Petroleo Brasileiro SA , Brazil’s state-controlled oil company, said it’s working to carry out a planned share sale in September and that no price has been set for 5 billion barrels of reserves to be swapped for stock.
Brazil delayed a final decision on the price that state-controlled Petroleo Brasileiro SA will need to pay for 5 billion barrels of oil reserves while the country analyzes more information, Cabinet Chief Erenice Guerra said.
Petroleo Brasileiro SA is still negotiating a price for oil reserves that it plans to buy from Brazil’s government in exchange for stock, which may delay approval by a panel of ministers and officials, Energy Minister Marcio Zimmermann said.