Is The Brazilian Oil Boom Overhyped?

At least one large international oil player will refrain from taking part in the so-called transfer-of-rights oil auction Brazil has scheduled for next week. Repsol Sinopec, a joint venture between Spain’s largest energy company and the top Chinese refiner has said it would not bid for the offshore fields to be offered in the auction. Reuters reports that the company does sees the terms of the auction as unattractive, which means that the proof of huge reserves is not enough to convince an oil company it should invest in these reserves. Simply…