Page 12 - ARUBA TODAY

A12 WORLD NEWS
Friday 8 June 2018

Foreign firms invest in Brazil oil despite fuel price strike

By PETER PRENGAMAN included several distraction as the company
Associated Press multinationals among the looked to the future.
RIO DE JANEIRO (AP) — 16 companies bidding, Those developments did
Multinational oil companies was closely watched to not appear to present
bought significant stakes in gauge market reaction problems for companies
three Brazilian pre-salt oil to the trucking shutdown, that agreed to pay $798
fields auctioned Thursday, which raised questions million to explore three of
a show of confidence in the about the ability of state four fields being auctioned.
future of the energy sector oil giant Petrobras to set There were no bids on the
despite a recent strike by prices without government fourth.
truckers over rising fuel interference. In the first, Shell bought 40
prices that brought Latin In addition, Petrobras CEO percent while Chevron and
America's largest nation to Pedro Parente stepped Petrobras each bought 30
a halt. down last week, saying percent. In the second, BP
The auction, which his presence would be a Energy bought 30 percent,

In this March 28, 2018 file photo, a man holds his fishing rod,
carrying an illuminated bobber, on the shore of Guanabara
Bay where Petrobras operates its ultra-deep drilling, Brazil.
Associated Press

Statoil 25 percent and that led to widespread
Petrobras 45 percent. In the shortages in supermarkets
third, Statoil and ExxonMobil and hospitals and the
bought 28 percent each, shuttering of thousands of
while Petrobras got 30 schools.
percent and Petrogal 14 The strike ended when
percent. Petrobras will be the government agreed
the operator in all three. to subsidize the price of
"This round was extremely diesel for 60 days and meet
successful, getting several other demands.
the attention of large While Temer and Cabinet
companies," said Decio ministers repeatedly insisted
Oddone, director of Petrobras would not be
the National Petroleum messed with, the markets
Agency, which regulates were suspect. During the
the oil and gas sector in strike, the company's stock
Brazil. "We continue the plunged more than 20
process of attracting percent on fears that in
investment for the country." the future the government
Last year, for the first time would intervene to set
the government gave prices, a common practice
private companies the before Temer took power in
chance to operate pre- 2016.
salt fields alone. It was The pre-salt reserves
part of President Michel auctioned lie offshore in
Temer's plan to increase the Atlantic. They are more
foreign investment and than 1 mile (1.6 kilometers)
give Petrobras more below the ocean's surface
independence to set fuel and under a further 2.5 miles
prices. (4 kilometers) underneath
However, Petrobras' future soil and corrosive salt.
is in doubt on the heels of "The overall risk for investors
the truckers' multiday strike is minimal," said Pinto.q