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December 10, 2007
SouthAmerica: Basically thereâs a very simple solution for this problem related to Floridaâs pension investment in Petrobras stock.
All they have to do is contact a major pension plan in Brazil that would be willing to exchange their investments in the United States in sub prime crap with the Florida pension money invested in Petrobras stock.
After the stock swap it is done Florida would have an investment based on the American Dream or nightmare â and the Brazilian pension fund would have an investment in a major Brazilian company of the future.
And in the meantime Petrobras should continue doing business with Iran and it should help them develop new oil fields in that area of the world.
It is a win-win-win situation for everyone Florida is able to unload the Petrobras stock, the Brazilian pension fund is able to unload the US sub prime crap - and Petrobras would not give a shit that Florida is no longer a shareholder.
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âState pensions, Brazil's oil and Iran entangledâ
Florida invested $112-million in Petrobras, which poses a conflict.
By DAVID ADAMS, Times Latin America Correspondent
Published December 10, 2007
St. Petersburg Times, FL.
MIAMI - When Florida Gov. Charlie Crist led a trade mission to Brazil last month, all the talk was of improving commercial ties with the state's largest trading partner.
"God bless sweet Brazil," Crist told his hosts, hailing the country's world-renowned biofuels program.
So it came as a surprise on Crist's last day in Brazil when he abruptly announced the cancellation of a meeting with executives at the state-controlled energy giant, Petroleo Brasileiro, or Petrobras.
"We will continue to follow the moral and prudent path by not doing business with companies that sponsor terror and by setting an example for all other states and nations," he said. He cited a new Florida law requiring that the state pension fund divest from companies doing business with Iran and Sudan.
At the time, Crist's staff said it was entirely symbolic. While Petrobras had a modest $35-million invested in an Iranian oil drilling company, as far as they knew, Florida had no investments in Petrobras.
Except for a few ruffled feathers - Petrobras officials were taken aback by the scolding from a politician on only his second overseas trip - that seemed like the end of the saga.
Now the St. Petersburg Times has learned that the Florida pension fund has $111,919,435 in foreign equity assets invested in Petrobras, according to the State Board of Administration, which manages the state's investments.
"I talked to the fund before I met with Petrobras to see what amount might be affected," said George LeMieux, Crist's then-chief of staff. "Perhaps someone missed it."
The miscalculation could have serious repercussions for the relationship between Petrobras and the state.
Under Florida law, Petrobras has until September 2008 to sever its ties with Iran before state officials would be forced to withdraw the $112-million investment in Petrobras.
What effect such a withdrawal might have on relations between Brazil and Florida is unclear. But Crist had viewed Petrobras, the world's largest distributor and retailer of biofuels, as a potentially key partner in his plans to promote renewable energy.
"Petrobras is a company that one way or another U.S. interests will have to deal with," said Jorge Pinon, a former Amoco oil executive in Latin America, now with the University of Miami's Center for Hemispheric Studies. "We're going to need Brazil if we move to E10," he added, referring to ethanol-blended gasoline, which is catching on in America but remains hard to find in Florida.
Petrobras has in recent years emerged as one of the world's largest oil and gas companies, with a major stake in renewable fuel. A monster offshore oil discovery announced last month could catapult Brazil to number eight in the ranks of the world's major exporters.
In just the last two years, its U.S. subsidiary, Petrobras America, has become a major player in drilling off the U.S. Gulf Coast.
"Pretty soon Petrobras is going to become one of the largest producers of oil in the Gulf of Mexico," Pinon said.
Although Florida's pension fund cannot invest in Petrobras under current circumstances, that would not prevent the Brazilian energy giant from investing in Florida, according to LeMieux. Petrobras has expressed interest in entering the retail fuel market in Florida.
"We are trying to make a policy statement about how we make our investments. That's really the only leverage point the state has," LeMieux said.
Florida's $112-million stake in the company is small compared with the company's market value of $75-billion. It registered profits of $12-billion in 2005.
Petrobras' investment in Iran is tiny compared with other international energy companies, limited to a $35-million drilling services contract in the Persian Gulf with the state-owned National Iranian Oil Co.
The contract was signed on July 14, 2004, well before a recent intensification of concern about Iran's nuclear ambitions, Petrobras officials say. The contract is due to expire on Jan. 14.
"Petrobras is internationally recognized for its responsible activities all over the world and it would never sponsor terror," the company said in a statement. The company noted that it has won wide praise for its efficient and transparent management.
Crist knew about Petrobras' Iran ties two months before the trip, staff members concede.
"A couple of months ago the Cabinet took further steps to divest from Iran, and a list of companies was provided to the governor," said the governor's spokeswoman, Erin Isaac. "During the meeting, he called me down to the Cabinet room and asked that the meeting be canceled immediately."
But Brazilian officials say the governor's action took them almost completely by surprise. Though they were given notice of the governor's change of schedule, they received no explanation until Crist's last day in Brazil.
The Brazilian consulate in Miami assumed the change had something to do with Crist's plans to travel to Argentina later that same day.
Brazil's Consul General in Miami, Joao Almino, has contacted Crist's office to express his government's "surprise" over Crist's decision and the language used in his Nov. 7 statement. Brazil respects Florida's right to regulate its pension plan, officials say, but they deny that Petrobras is associated with terrorism.
Brazil considers itself an ally in combating terrorism, said Rafael Vidal, Brazil's Deputy Consul General in Miami. "We are playing on the same side," he said.
LeMieux said he was hopeful Petrobras would sever its Iran ties after its drilling contract expires in January. "So it may all work out."
Source: http://www.sptimes.com/2007/12/10/State/State_pensions__Brazi.shtml
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December 10, 2007
SouthAmerica: Basically thereâs a very simple solution for this problem related to Floridaâs pension investment in Petrobras stock.
All they have to do is contact a major pension plan in Brazil that would be willing to exchange their investments in the United States in sub prime crap with the Florida pension money invested in Petrobras stock.
After the stock swap it is done Florida would have an investment based on the American Dream or nightmare â and the Brazilian pension fund would have an investment in a major Brazilian company of the future.
And in the meantime Petrobras should continue doing business with Iran and it should help them develop new oil fields in that area of the world.
It is a win-win-win situation for everyone Florida is able to unload the Petrobras stock, the Brazilian pension fund is able to unload the US sub prime crap - and Petrobras would not give a shit that Florida is no longer a shareholder.
*********
âState pensions, Brazil's oil and Iran entangledâ
Florida invested $112-million in Petrobras, which poses a conflict.
By DAVID ADAMS, Times Latin America Correspondent
Published December 10, 2007
St. Petersburg Times, FL.
MIAMI - When Florida Gov. Charlie Crist led a trade mission to Brazil last month, all the talk was of improving commercial ties with the state's largest trading partner.
"God bless sweet Brazil," Crist told his hosts, hailing the country's world-renowned biofuels program.
So it came as a surprise on Crist's last day in Brazil when he abruptly announced the cancellation of a meeting with executives at the state-controlled energy giant, Petroleo Brasileiro, or Petrobras.
"We will continue to follow the moral and prudent path by not doing business with companies that sponsor terror and by setting an example for all other states and nations," he said. He cited a new Florida law requiring that the state pension fund divest from companies doing business with Iran and Sudan.
At the time, Crist's staff said it was entirely symbolic. While Petrobras had a modest $35-million invested in an Iranian oil drilling company, as far as they knew, Florida had no investments in Petrobras.
Except for a few ruffled feathers - Petrobras officials were taken aback by the scolding from a politician on only his second overseas trip - that seemed like the end of the saga.
Now the St. Petersburg Times has learned that the Florida pension fund has $111,919,435 in foreign equity assets invested in Petrobras, according to the State Board of Administration, which manages the state's investments.
"I talked to the fund before I met with Petrobras to see what amount might be affected," said George LeMieux, Crist's then-chief of staff. "Perhaps someone missed it."
The miscalculation could have serious repercussions for the relationship between Petrobras and the state.
Under Florida law, Petrobras has until September 2008 to sever its ties with Iran before state officials would be forced to withdraw the $112-million investment in Petrobras.
What effect such a withdrawal might have on relations between Brazil and Florida is unclear. But Crist had viewed Petrobras, the world's largest distributor and retailer of biofuels, as a potentially key partner in his plans to promote renewable energy.
"Petrobras is a company that one way or another U.S. interests will have to deal with," said Jorge Pinon, a former Amoco oil executive in Latin America, now with the University of Miami's Center for Hemispheric Studies. "We're going to need Brazil if we move to E10," he added, referring to ethanol-blended gasoline, which is catching on in America but remains hard to find in Florida.
Petrobras has in recent years emerged as one of the world's largest oil and gas companies, with a major stake in renewable fuel. A monster offshore oil discovery announced last month could catapult Brazil to number eight in the ranks of the world's major exporters.
In just the last two years, its U.S. subsidiary, Petrobras America, has become a major player in drilling off the U.S. Gulf Coast.
"Pretty soon Petrobras is going to become one of the largest producers of oil in the Gulf of Mexico," Pinon said.
Although Florida's pension fund cannot invest in Petrobras under current circumstances, that would not prevent the Brazilian energy giant from investing in Florida, according to LeMieux. Petrobras has expressed interest in entering the retail fuel market in Florida.
"We are trying to make a policy statement about how we make our investments. That's really the only leverage point the state has," LeMieux said.
Florida's $112-million stake in the company is small compared with the company's market value of $75-billion. It registered profits of $12-billion in 2005.
Petrobras' investment in Iran is tiny compared with other international energy companies, limited to a $35-million drilling services contract in the Persian Gulf with the state-owned National Iranian Oil Co.
The contract was signed on July 14, 2004, well before a recent intensification of concern about Iran's nuclear ambitions, Petrobras officials say. The contract is due to expire on Jan. 14.
"Petrobras is internationally recognized for its responsible activities all over the world and it would never sponsor terror," the company said in a statement. The company noted that it has won wide praise for its efficient and transparent management.
Crist knew about Petrobras' Iran ties two months before the trip, staff members concede.
"A couple of months ago the Cabinet took further steps to divest from Iran, and a list of companies was provided to the governor," said the governor's spokeswoman, Erin Isaac. "During the meeting, he called me down to the Cabinet room and asked that the meeting be canceled immediately."
But Brazilian officials say the governor's action took them almost completely by surprise. Though they were given notice of the governor's change of schedule, they received no explanation until Crist's last day in Brazil.
The Brazilian consulate in Miami assumed the change had something to do with Crist's plans to travel to Argentina later that same day.
Brazil's Consul General in Miami, Joao Almino, has contacted Crist's office to express his government's "surprise" over Crist's decision and the language used in his Nov. 7 statement. Brazil respects Florida's right to regulate its pension plan, officials say, but they deny that Petrobras is associated with terrorism.
Brazil considers itself an ally in combating terrorism, said Rafael Vidal, Brazil's Deputy Consul General in Miami. "We are playing on the same side," he said.
LeMieux said he was hopeful Petrobras would sever its Iran ties after its drilling contract expires in January. "So it may all work out."
Source: http://www.sptimes.com/2007/12/10/State/State_pensions__Brazi.shtml
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