02 September 2010

BRASIL: Petrobras Will Pay $42.5 Billion For Oil Reserves.

BLOOMBERG/    In a long awaited announcement and after much speculation and negotiations, Petrobras said it will pay an average of $8.51 a barrel... with new stock... for 5 billion barrels of undeveloped offshore reserves. Before today, Petrobras shares had plunged 26% in Sao Paulo this year over worries that it would pay more for the oil than it’s worth and diluting earnings. Some analysts believe the price... is too high.