Oct. 7 - Reynolds Holding and Christopher Swann discuss the dramatic shortfall in the Brazilian magnate’s professed oil reserves and why the government’s auction of another big find is now at risk.
I keep -- taste of the Brazilian on trip from her may not be the emperor with no clothes but that does is OGX exploration company -- look and. Pretty scant eight Chris that's an oilfield. That's got like a third of what they said it was recoverable last year what what's going on -- that. Well -- backpack at the in the Halcyon days of 2010. I keep statistics aren't used to be a richest man in the world. -- -- -- may -- seven billion barrels of oil Brenda as says billions yet fast -- a couple of years and it looks like it's more like a hundred million. Unbelievable. Say it's been a massive decline this idea really at the heart of the collapse -- -- sat -- his empire right and. But it doesn't just make him look -- and the fact that Brazil's regulators didn't at some point. Clamp down on some at its height makes them -- without us exactly what has the power they have the power to say you can't lying about your reserves how does that work. Yet it's a bit of the correct area -- in America I didn't think he would have gotten away with making quite such outlandish things. Of course yet the investors that -- should have been a little away areas that aren't in today's. At the big problem is that present itself is trying to settle resents that commitment to trying to sell. Access to these fields it's asking for it plenty of money. Right and of course now investors have that much money is and -- for Soviets billions right above it about you have to have the right come -- and it explore and exploit our oil yeah. That they leave your field which is news to be one of the big fines of the past couple of decades -- -- talking about twelve billion barrels. The other one upfront payments of about seven billion dollars. I guess the question now is some of those twelve billion barrels -- acts there that you know and now oceanics. Is it just I mean how much trouble is it it -- it sounds like it's things are getting a little here politics. It's hard to see a way out because that ain't it that it has perhaps debts and obligations of around six point four billion dollars. I -- with its new asset base down to a hundred million barrels may be assets rainy west. Billion dollars whole aura round about that kind of figure -- he should be it's hard to see how I keep its history escapes from the NNO how quickly will things move along and we've dismissed just announced. What last Thursday. On the how long before people investors start really reacting pulling out though DX starts you know taking the fall or doing whatever it's gonna do what will -- -- coming forward thinness of the slave nation collapsing -- the past year -- -- but at the bombs are now trading on fourteen cents on the dollar I don't think people and not today expecting to get a huge amount of money back -- this it'll be. Perhaps Latin America's largest. Bankruptcy in in in history. While okay. Well that's -- that's interesting stuff we're gonna leave it there are in the meantime stay tuned for more breaking news tomorrow.