Brazil tightens its grip on Petrobras

Deep-water specialist Petrobras is now further under the Brazilian government's control, after a high-cost purchase of new oil reserves

PETROBRAS's minority shareholders are set to pay dearly for their right to be part-owners of a company with some of the best access to new oil reserves outside of Opec. The principal step in the long and convoluted "capitalisation" process, aimed at propping up Petrobras's finances with new oil reserves, has concluded with the state-controlled firm paying far more than investors had hoped for the right to develop some of the country's most promising offshore, pre-salt blocks. At an average price of $8.51 a barrel, Petrobras, in the eyes of many shareholders, is paying a stiff price for new drilling rights in an area with huge potential, but also tricky technical challenges. Contrast that wit