The International Strategies of Petrobas Essay Example | Topics and Well Written Essays - 2750 words

The International Strategies of Petrobas - Essay Example The company that is the subject of this research is Petrobras, a Brazilian National Oil Company incorporated in 1953 with its headquarters located in Rio Brazil. Petrobras is the largest oil company by market capitalization in the entire South America region and is the largest in Latin America by revenue. The company’s production capacity stands at over 2 million barrels of oil per day. Apart from being among the leading oil producers in the South American region, it is also a major distributor of oil and gas products (Goldstein 2010, p.102). Petrobras shares are listed on both the New York and Brazil Stock Exchange. For instance, the company issued shares worth $4.3 billion through an IPO on 9 August 2000 in both stock exchanges. During the IPO issue, it is reported that over 400,000 Brazilians, institutions, and foreigners bought the shares. However, the Brazilian government owns about 33.2% of the company’s shares, with a voting stake of about 55.7%. Goldstein notes that Petrobras gas and oil production has experienced immense growth in the last few decades both locally and internationally. The growth of the company has been attributed to the efforts made by the company to face the challenges of heavy oil and gas production, deep-water environment and high-temperature reservoirs. Goldstein reveals that the company’s success in the region emanated from the fact that it has introduced the use of the latest technology in its exploration and production of oil and gas giving it the competitive advantage over other oil companies from the region and other parts of the world. For instance, the company has expertise in engineering and geosciences, in deepwater exploration. In its endeavor to serve the people of Brazil and the international market, the company has been able to set a number of records such as the world’s deepest exploration well of about 2,853 m it dug in Roncador field. This record has stood so for a very long time now.