Identifier
Created
Classification
Origin
06BRASILIA1171
2006-06-12 18:51:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Brasilia
Cable title:
PETROBRAS ACQUISITION OF PASADENA REFINING SYSTEMS -
how-toVZCZCXRO6130 PP RUEHRG DE RUEHBR #1171 1631851 ZNR UUUUU ZZH P 121851Z JUN 06 FM AMEMBASSY BRASILIA TO RUEHC/SECSTATE WASHDC PRIORITY 5738 INFO RUEHRG/AMCONSUL RECIFE 4942 RUEHSO/AMCONSUL SAO PAULO 7174 RUEHRI/AMCONSUL RIO DE JANEIRO 2260 RUEHLP/AMEMBASSY LA PAZ 4642 RUEHQT/AMEMBASSY QUITO 1863 RUEHBU/AMEMBASSY BUENOS AIRES 4076 RUEHAC/AMEMBASSY ASUNCION 5487 RUEHSG/AMEMBASSY SANTIAGO 5567 RUEHMN/AMEMBASSY MONTEVIDEO 6305
UNCLAS BRASILIA 001171
SIPDIS
SENSITIVE
SIPDIS
STATE FOR EB/IFD/OIA - MILLER
E.O. 12958: N/A
TAGS: EINV EPET ECON PREL BR
SUBJECT: PETROBRAS ACQUISITION OF PASADENA REFINING SYSTEMS -
CFIUS CASE 06-33
REF: A) EB/IFD/OIA MILLER MEMO OF 5/22/06
B) STATE 81527
C) BRASILIA 1017
(U) This cable is Sensitive but Unclassified, please protect
accordingly.
UNCLAS BRASILIA 001171
SIPDIS
SENSITIVE
SIPDIS
STATE FOR EB/IFD/OIA - MILLER
E.O. 12958: N/A
TAGS: EINV EPET ECON PREL BR
SUBJECT: PETROBRAS ACQUISITION OF PASADENA REFINING SYSTEMS -
CFIUS CASE 06-33
REF: A) EB/IFD/OIA MILLER MEMO OF 5/22/06
B) STATE 81527
C) BRASILIA 1017
(U) This cable is Sensitive but Unclassified, please protect
accordingly.
1. (SBU) The Mission has received repeated assurances, most
prominently during Secretary of Commerce Gutierrez's June 7
meeting with President Lula's Chief of Staff Dilma Rousseff --
who also serves as President of Petrobras' Board of Directors --
that Petrobras has no interest in taking over Occidental
Petroleum's Ecuador assets (ref A). The Charge received similar
assurances from Petrobras International Director Nestor Cervero
in a May 26 meeting (ref C). Given these credible assurances,
made at the ministerial level, Post believes the Occidental case
should not be an obstacle to Petrobras' proposed acquisition of
50% of Pasadena Refining Systems (PRS).
2. (SBU) Although Petrobras is majority owned by the GoB, the
company is publicly traded on both the New York Stock Exchange
(NYSE) and the Sao Paulo Stock Exchange (BOVESPA). Since it's
partial privatization of the 1990's, the company has been run
much more like a private company than an arm of the Brazilian
government. It has a reputation for sound corporate governance
and for innovation in deepwater drilling technologies.
Moreover, as it has expanded overseas, it has behaved in the
interests of its stockholders, even in cases where these did not
fully coincide with the policy of the Brazilian government.
Post does not believe that Petrobras' acquisition of PRS poses a
national security risk.
CHICOLA
SIPDIS
SENSITIVE
SIPDIS
STATE FOR EB/IFD/OIA - MILLER
E.O. 12958: N/A
TAGS: EINV EPET ECON PREL BR
SUBJECT: PETROBRAS ACQUISITION OF PASADENA REFINING SYSTEMS -
CFIUS CASE 06-33
REF: A) EB/IFD/OIA MILLER MEMO OF 5/22/06
B) STATE 81527
C) BRASILIA 1017
(U) This cable is Sensitive but Unclassified, please protect
accordingly.
1. (SBU) The Mission has received repeated assurances, most
prominently during Secretary of Commerce Gutierrez's June 7
meeting with President Lula's Chief of Staff Dilma Rousseff --
who also serves as President of Petrobras' Board of Directors --
that Petrobras has no interest in taking over Occidental
Petroleum's Ecuador assets (ref A). The Charge received similar
assurances from Petrobras International Director Nestor Cervero
in a May 26 meeting (ref C). Given these credible assurances,
made at the ministerial level, Post believes the Occidental case
should not be an obstacle to Petrobras' proposed acquisition of
50% of Pasadena Refining Systems (PRS).
2. (SBU) Although Petrobras is majority owned by the GoB, the
company is publicly traded on both the New York Stock Exchange
(NYSE) and the Sao Paulo Stock Exchange (BOVESPA). Since it's
partial privatization of the 1990's, the company has been run
much more like a private company than an arm of the Brazilian
government. It has a reputation for sound corporate governance
and for innovation in deepwater drilling technologies.
Moreover, as it has expanded overseas, it has behaved in the
interests of its stockholders, even in cases where these did not
fully coincide with the policy of the Brazilian government.
Post does not believe that Petrobras' acquisition of PRS poses a
national security risk.
CHICOLA