Monday, August 22, 2011

Gadaffi Going Down: Bad For Companies From China, Russia, And Brazil

Bad news for PetroBras (PBR) and Odebrecht (construction).

"We don't have a problem with western countries like Italians, French and UK companies. But we may have some political issues with Russia, China and Brazil," Abdeljalil Mayouf, information manager at Libyan rebel oil firm AGOCO.

 The comment signals the potential for a major setback for Russia, China and Brazil, becuase they opposed tough sanctions on Gaddafi or pressed for more talks.

It could mean a loss of billions of dollars worth of oil exploration and construction contracts in the African nation.

Gaddafi's fall will reopen the doors to the country with Africa's largest oil reserves. New players such as Qatar's national oil company and trading house Vitol are set to compete with established European and U.S. majors.

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1 comment:

Unknown said...

Italian oil company Eni (E) has a big presence in Libya.

Don't have my figures with me, but recall Italy received something like 20-33% of its oil/nat gas from Libya. Also, many Libyans speak/understand Italian (Italian television continued to be accessed during the rebellion).

FWIW: It's only the first hour of Monday trading, but E is understandably up nearly $3.


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