Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Chevron and Transocean Are in Brazilian Hot Water

On Tuesday and Thursday of last week, Brazil's government decided to crack its whip in their ruling on Chevron and Transocean's involvement in last November's Frade field oil spill. Both companies have been dealt an injuction that gives them 30 days to cease operations off the up-and-coming oil producer's coast. Petrobras and ANP, Brazil's national petroleum agency, are both fighting to keep the companies in operation because of their perceived importance in the country's future oil production, but the Supreme Court struck down ANP's first attempt last week. 

Transocean appears to be the most affected based on the revenues it generates in Brazil as a percentage of total revenue. It currently has 10 rigs in operation, eight of which are contracted to Petrobras. Its recently announced deal with Royal Dutch Shell (LSE: RDSA  ) involving four drilling contracts is worth an estimated $7.6 billion and is set to commence in 2015 and 2016. 

If the injuction stands the test of Chevron and Transocean's efforts, other offshore drillers such as Ensco (NYSE: ESV  ) and Seadrill (NYSE: SDRL  ) stand to benefit from the removal of Transocean's deepwater rigs. See more in the following video.

With the swelling of the global middle class, energy consumption will skyrocket over the next few decades, and long-term investors know that you want exposure to this space now. We've picked one incredible natural gas company that presents a rare "double-play" investment opportunity today. We're calling it The One Energy Stock You Must Own Before 2014, and you can uncover it today, totally free, in our premium research report. Click here to read more

Joel South has no positions in the stocks mentioned above. Taylor Muckerman owns shares of Ensco. The Motley Fool owns shares of Transocean and Seadrill. Motley Fool newsletter services recommend Chevron and Seadrill. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 03, 2012, at 10:33 AM, artmuseum wrote:

    SDRL keeps running circles around RIG.

    SDRL is planning to have a SDRL security listed on Brazil's stock exchange in 2013, whilst

    RIG is in a heap of trouble in Brazil,

    fighting a rear guard action to avoid punitive damages.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2039155, ~/Articles/ArticleHandler.aspx, 10/25/2016 1:48:49 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,182.21 -40.82 -0.22%
S&P 500 2,145.33 -6.00 -0.28%
NASD 5,285.62 -24.21 -0.46%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/25/2016 1:33 PM
CVX $100.90 Up +0.24 +0.24%
Chevron CAPS Rating: ****
ESV $8.45 Down -0.20 -2.26%
Ensco CAPS Rating: *****
RDSA $2080.64 Up +12.64 +0.61%
Royal Dutch Shell… CAPS Rating: No stars
RIG $10.05 Down -0.06 -0.59%
Transocean CAPS Rating: ****
SDRL $2.27 Up +0.01 +0.44%
Seadrill CAPS Rating: ***