Looking for the next Exxon Mobile? Look no further than Brazil's state-run oil giant PetroBras (PBR). This is a company waiting to take off and i might have caught another huge break. The company has been in advanced talks with China Development Bank for as much as $10 billion to explore recently discovered deep-water oil reserves. Take into consideration it was only a couple months ago when the Brazillian government loaned the company $30 billion to help with the companies $174 billion investing strategy aimed at finding the Americas' largest discovery in three decades. While most oil companies are cutting costs PBR is increasing investments by 50%. Something big is soon to happen and when it does make sure to be an investor. The Chinese money will come from the $2 trillion reserve, in which they plan to secure commodities admist while the international commodity prices stay relatively low. PBR needs the money fast to help pay for the immense oil and gas discoveries they have found off Brazil's coast, which could turn Brazil into the world's major oil exporter pushing out the Middle East. These oil fields are abundant yet deep underwater needing many resources in order to exploit. Thats is where China's help will come in. More good news for PBR who also recently signed a separate agreement to sell 60 to 100 thousand barrels of crude oil a day, 5% of total production, to a Chinese Petroleum and Chemical Company known as Sinopec. Another memorandum from China National Petroleum (CNPC) could add another 60,000 barrels a day. Latin America loves this company and governments across the continent are injecting capital in hope that it will suceed and become the enxt Exxon. With plans to increase production levels by 10 times the sky is the limit for PBR. I love this company because i am a believer that oil will only go up in time. To think that it will stay at the low levels it is hovering around right now is ignorant. With limited supply and exceeded demanded it is simple economics that it will rise. The reason that PBR is such a strong play is one it is international/emerging markets which allows it to drill offshore and do whatever it wants something U.S. companies are restricted at doing. Secondly the backing of Latin American governments will provide funding to make sure that it falters. Thirdly if these discoveries are true they will have an abundant amount of crude to supply the world when the Middle East dry up. PBR is lagging right now but look for it to skyrocket near the end of the year. Buy while its cheap.
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