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Petrobras, Brazil’s largest Oil & Gas company, is preparing to raise US$ 32 billion from minority shareholders to fund development of offshore “pre-salt” oil fields as part of $ 224 capital expenditure.  This is part of Oil for shares swap between the Government and the company. Many analyst, predict that the Governments stake will rise from 29.6% to 38% in the company as a way of supporting the share issue.

Al Neft Commentary:

Petrobras has built its reputation as an able operator and deepwater expertise at home and abroad.  The discovery of “pre-salt” fields has added billions of barrels to its fortune. More production and more revenues to be expected. Nevertheless, the increasing Government shareholding will mean more interference by Brasilia – committing the company to use local companies and labour and potential influence on strategic decisions.  So while the company’s days as an oil production giant are about to begin, its time as one of the world’s more independent NOCs may be over.

Petrobras prepares to raise up to R$55bn (FT)