Category Petrobras

Petrobras News Notes Ratings

Yesterday both Moody’s and S&P released their rating of Petrobras Global Finance B.V.’s proposed new global notes, which will be unconditionally guaranteed by Petrobras.  Moody’s gave it a Ba3 rating accompanying the rationale behind it that the Ba3 global scale rating reflect the high debt levels and business plan execution risk and, to a lesser extent, […]


Petrobras is Preparing Pre-Salt Mega Tender

Last Friday, it was announced that Petrobras subsidiary Petrobras Global Finance registered a 6K-form with the US Securities and Exchange Commission (SEC) as the initial step to a tender of pre-salt fields in which the company will raise revenue to an early payment of securities due in 2019. According to O Globo, the Brazilian government […]

Petrobras Lands Loan from China Development Bank (CDB)

Petrobras announced yesterday it had signed a 10-year USD 5 billion loan with China Development Bank (CDB) and a commercial contract with Unipec Asia Company for a preferential supply of 100,000boe/d during 10 years. Under the terms of the loan, CDB will disburse USD 2.5 billion by December 2017 and the remainder in January 2018, when Petrobras will […]

Petrobras seeks buyers for Azulão natural gas field in Brazil

Petrobras unveiled today plans to divest the Azulão natural gas field in the Brazilian Amazon Basin as part of its sale strategy to raise nearly USD 21 billion by the end of 2018. Petrobras  has 100% interest in the natural gas asset in Concession BA-3 in Amazonas state, located 290km east of Manaus, the capital city […]

Petrobras Denies Talks with Exxon Mobil

Petrobras denied this morning being in ongoing talks to partner with Exxon Mobil after Bloomberg reported the two firms were talking. The Wall Street Journal had already reported last month that Exxon Mobil was exploring ways to acquire a stake in Brazil’s offshore oil resources. Possible alternatives included Exxon Mobil investing in projects along with Petrobras, as well as […]

Legislation to Attract FDI is on the Way

Yesterday, Temer’s Chief of Staff, Eliseu Padilha, announced that the PMDB majority Congress is likely to vote legislation next month to attract FDI. According to Padilha, new legislation will focus on infrastructure and regulatory issues and would give agency directors more discretionary over their budgets. And these directories would be hires for five-year fixed terms not […]

Petrobras to Dismiss 12 thousand Employees

As you all know, Brazil is currently at the peak of a dangerous political crisis. Yesterday Lula was appointed Chief of Staff, then it wasn’t anymore. People were out in the streets and there were news of localized violence. The impeachment committee’s member were chosen and it looks like it will proceed full-on to knock down […]

The Unbearable Lightness of Petrobras

Following a very (or not….) controversial vote from the Congress last week, we need to understand why the Petrobras collapse and the pre-salt is so important for Brazil. For those who read Portuguese, here is a highly recommended reading from today’s Estadão:,a-insustentavel-leveza-da-petrobras,10000018942 PS: Sorry for skipping the Moody’s downgrade last week. I was out for a […]

Petrobras Ratings Affirmed by S&P

The dollar’s slide down today against the real gave Brazil’s stock market a nice bump. On top of that, S&P’s  affirmed its ‘BB’ global scale ratings on Petrobras, citing a “very high likelihood of extraordinary government support” for the company’s heavy debt load. Petrobras’ shares went up by nearly 5% this afternoon but S&P lowered the company’s […]

Petrobras to overhaul corporate structure and cut jobs

As the crisis deepens and its stock prices sink even lower, Petrobras decided today to slash management jobs as part of an efficiency drive approved by its board of directors. Management jobs in non-operating areas will be cut by 30 percent. Petrobras has about 5,300 management positions in non-operating areas, meaning approximately 1590 people will be […]

Emerging Markets Insights

a blog by Frontier Strategy Group


A blog on macroeconomics and public policy by Tony Yates.