Project Finance in the Brazilian Petroleum Industry SPE 69469
Language: Inglés Series: Ferreira Filho, Virgilio José M ; Publication details: Dallas, Texas Society of Petroleum Engineers 2001Online resources: Summary: In order to cover the financial capability of Public sector in the emerging countries, new ways of financing of the Public expenditure in infrastructure projects need to be studied. This is the particular case of the Petroleum Industry in Brazil. Perhaps, without private capital, both national or foreign, the Brazilian Industry will never be able to support itself his own consumption demands. Therefore, the use of Project Finance (PF) modeling to meet an alternative way to Corporate Finance, will be extensively used to substitute the governmental role of Public Investor, who, besides, doesn’t have more capability to invest intensively in Petroleum Projects. Some advantages brought throughout Project Finance is separation of the project risk, by the creation of the SPC (Special Purpose Company), whose account life has independence to the players of the project. Otherwise, this kind of financial modeling is used in projects that require intensive amounts of capital, like oil and gas projects. So, despite the higher cost of capital, the Project Finance alternative can be extensively used to find out his owns self-sufficient in the production of oil and gas.| Current library | Status | Barcode | |
|---|---|---|---|
| Biblioteca virtual | Not for loan | 200003016 |
In order to cover the financial capability of Public sector in the emerging countries, new ways of financing of the Public expenditure in infrastructure projects need to be studied. This is the particular case of the Petroleum Industry in Brazil. Perhaps, without private capital, both national or foreign, the Brazilian Industry will never be able to support itself his own consumption demands. Therefore, the use of Project Finance (PF) modeling to meet an alternative way to Corporate Finance, will be extensively used to substitute the governmental role of Public Investor, who, besides, doesn’t have more capability to invest intensively in Petroleum Projects. Some advantages brought throughout Project Finance is separation of the project risk, by the creation of the SPC (Special Purpose Company), whose account life has independence to the players of the project. Otherwise, this kind of financial modeling is used in projects that require intensive amounts of capital, like oil and gas projects. So, despite the higher cost of capital, the Project Finance alternative can be extensively used to find out his owns self-sufficient in the production of oil and gas.
