September 2, 2010 by staff
Mariner Energy, Energy stocks moved again on Thursday, adding to the huge gains in the previous session, while investors with a hot 43 billion stock offering of Petrobras as it progresses the development of large oil fields in Brazil sea.
Meanwhile, the Mariner Energy / quotes/comstock/13 *! ME (ME 22.90, -0.45, -1.93%) shares fell 2.5% to 22.76 after the U.S. and Coast Guard reported a fire in Vermillion Platform Company in the Gulf of Mexico. A company spokesman told CNBC the offshore well was closed at the time, oil production there. The Coast Guard sent ships and helicopters to the scene. See full story.
NYSE Arca index of oil / quotes/comstock/10t! Xoi.x (XOI 970.35, 6.84, 0.71%) rose 0.8% to 971 points. The Philadelphia Oil Service Index / quotes/comstock/10y! I: OSX (OSX 179.75, 0.39, 0.22%) rose 0.3% to 180. The NYSE Arca Natural Gas Index / quotes/comstock/10t! Xng.x (XNG 507.91, 1.94, 0.38%) rose 0.4% to 508.
Petroleo Brasileiro, also known as Petrobras, plans to develop an estimated 5 million barrels of oil, after the government agreed to a price of 8.51 and a barrel for oil-rich fields far below the Atlantic Ocean off the coast of Rio de Janeiro.
Flotation of the company marks one of the largest securities offerings of the year. The agreement, which was expected, is part of an overall plan for Petrobras to invest 224 billion and in 2014 – and in the process of securing the position of Brazil among the world’s top ten oil producing countries.
But in the face of a huge oil supply and high cost deepwater development, the stock offering comes at a time of risk. Some investors in Petrobras, as the billionaire George Soros, have been reducing their holdings in the company.
But with uncertainty over the offer now off the road, the listed shares of Petrobras / quotes/comstock/13 *! Pbr / quotes / nls / pbr (PBR 35.59, 0.52, 1.47%) rose 1% to $ 35. 45.
Among other stocks in the spotlight, Enbridge Inc. / quotes/comstock/13 *! ENB / quotes / nls / ENB (ENB 50.98, 0.18, 0.35%) rose 0.6% to 51.09 y. The entire company plans to invest 185 million and expand its portfolio of Athabasca in Canada.
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