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Kiwi67

Where to start with Petrobras, and indeed Brazillian MNCs !

Firstly I have had no dealings with PB in Australia - but I have had dealings with them in Africa and Brazil and indeed their industrial (giant) cousins, Vale, Odebrecht, Comargo Corea et al.

They are culturally different and decision making seems to involve higher than usual (ie compared to say American oilers)amounts of politics and buerocracy. Putting this to one side - and lets say this is not an issue - the real problem with Petrobras is that they have joined this race too late. Petrobras does not play 'junior partner'. They want control. This is a perfectly acceptable philosophical business approach and ethos. However they cant have control in this situation as they simply do not have a critical mass in the area. Nor can they. Its too late.

So they will have to negotiate a sale of gas - but this goes against thier grain. Trying to pin down where this decision goes will be like trying to track a ping pong ball in a tornado. In fact it will have as much chance as said ball in a tornado.

If heaven forbid it might the ambition of the local arm to want build a plant (and this may indeed be their position)I have absolutely no doubt in my mind it will be to entre one of the giant brazillian engineering and construction houses into Aust. Petrobras and Vale have long been vehicals to extend the sphere of Brazillian influence in Africa. I actually believe they are coerced by govt to dish out contracts OS to brazillian conglomerates. It often makes for unhappy marriages.

All this for what ? Develope a few tcf gas field ? Why bother when you have multi billion barrel deepwater oil fields in the Santos basin to wrestle with? What sort of attention will a pissy discovery in Aust get ? Petrobras Rig and platform order this year will eclipse the cost of entire LNG plant.

My point is that there is too much else of major significance going in Petrobras for them to give the attention to this project in a timely manner. If at all.

Just my opinion.