Petrobras Breathes a Sigh of Relief Over Big Tax Bill

While there are some disadvantages to being a national oil company, there are also some pretty cushy perks as well. Thanks to its position in Brazil, Petrobras (NYSE: PBR  ) just got some big relief as a court ruling determined that it is not obligated to pay an outstanding tax bill of $3.45 billion. This should be a huge help as the company looks to make big gains in production in the upcoming years thanks to the pre-salt formation in offshore Brazil.

Despite all the big moves and bigger plans for the company, there are two questions that still linger for this Brazilian oil giant. Who will be its major partners in pre-salt formation drilling, and can it execute these major projects both on schedule and within budget. Watch the following video, in which contributor Tyler Crowe looks at some of the recent moves that Petrobas has made and how it benefits as Brazil's national oil company.

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  • Report this Comment On July 20, 2013, at 8:50 AM, no1punk1in1Natal wrote:

    There is no way Petrobras ever makes presalt developments within budget. The combination of their tough logistics contracts and the underestimated cost effects of Brazilian old fashioned administrative complexity will lead all Petrobras contractors to increase their prices far above current budget estimates.

    In the meantime, there will be presidential elections, people are in the streets. Scenario will change.

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