Brazil is set to unveil today, August 31st, a sweeping reform of regulations covering the oil and natural gas industries. The regulatory framework will delineate how recently discovered offshore sub-salt oil deposits should be developed, who will develop them and who will reap the rewards.
The reform is part of Brazilian President Luiz Inácio Lula da Silva’s effort to use the newfound oil wealth to ease the country’s poverty, improve its education system and promote technological research.
Lula is expected to forward the measures to Congress on Tuesday, asking for quick approval to speed up development of the oil deposits. But with elections on the horizon next year, the political infighting has already started.
Doubts about how royalties from the promising sub salt oil deposits will be distributed have cast a pall over Monday’s grand ceremony, set to take place at a convention hall in Brasilia. The governors of Rio de Janeiro and Sao Paulo states haven’t yet confirmed their presence because of the dispute. (more…)
SAO PAULO (Dow Jones)–Shares of Brazilian real estate companies rose Friday as investors see them well placed to take advantage of the country’s economic rebound
As of 1430 GMT, shares in Brazil’s largest real-estate developer Cyrela Brazil Realty SA (CYRE3.BR) were up 5.65% at 23.75 Brazilian reals ($12.98), while its local rival Gafisa SA (GFA) was up 6.77% at BRL27.60.
The benchmark Ibovespa index was 1.4% higher.
“The scenario is very positive for real estate companies. Investors are confident that they are well positioned,” said Alex Pardellas, an industry analyst at Banif Investment Banking.
After Brazil’s gross domestic product dropped 1.8% in the first quarter of 2009, analysts are expecting a recovery in the next few quarters.
