UBS expects a maximum of two bidding groups to compete at Brazil's Oct
21 sale of the Libra oil field, one of the world's largest offshore
discoveries. Just 11 companies registered for the sale, mostly Asian national
oil companies.
"Chinese players will likely not bid against each
other," UBS adds. Potential bidders limited by "unfriendly"
economic, political environment, UBS says. Also driving investors away: capped
returns, $7B signing bonus and fact
Brazil
's
Petrobras (PBR PETR4.BR) obligated to operate field. UBS says returns for
Libra, however, will be better than PBR's share price of BRL18.94 reflects.