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Piezoe: â¦interested in your views on the new law giving the armed forces police power, and any impact you think this might have on the economy going forward.
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September 1, 2010
SouthAmerica: Reply to Piezoe
When the enclosed article was published in April of 2010 â the article caught the immediate attention of the mainstream media in Brazil and also caught the attention of the Brazilian government.
I donât know of any other article that has been published since 1985 that said the following: âI am suggesting that the military should seize power again in Brazil through a coup d'état,â¦â
1) Brazzil Magazine â April 13, 2010
The Brazilian Formula for Success: Dictatorship
Written by Ricardo C. Amaral
http://www.brazzil.com/component/co...ormula-for-success-dictatorship.html#comments
Since this article was published I started receiving information from a Deputado Federal (Congressman) regarding new laws that are in the process of being passed in Brazil that relates to the subject of my article.
I hope that the war on the drug traffickers and criminal gangs in Brazil it doesnât get out of control like the one that is going on in Mexico.
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Piezoe: Do you have any specific comments with regard to Petrobras as or Vale as those are Brazilian companies many of us follow.
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SouthAmerica: Petrobras it is a very complex subject, and now deepwater oil exploration it has become an even more complex subject after the BP fiasco on the Gulf of Mexico.
Deepwater oil exploration - companies are drilling further out into the sea and deeper under the ocean floor, at depths greater than 1000 feet to tap into one of the last remaining pockets of oil and natural gas in the world. Though deepwater was once prohibitively expensive, high oil prices during 2007 and the first half of 2008 made the economics of deepwater drilling feasible. Oil's collapse during the 2008 Financial Crisis has killed the margins of many in the industry, but demand for deepwater rigs is still high. Tied into long-term contracts, companies continue to drill despite falling profits.
Brazilian Petroleum Corporation (PBR) is the national oil company of Brazil, with a virtual monopoly of all petroleum exploration and production in the country. In November 2007, the company announced the discovery of the Tupi oilfield, the biggest discovery in the last 20 years worldwide. Estimates from geological studies claim reserves in the range of 5 to 8 billion BOE. To put this in perspective, this field alone increases Brazil's hydrocarbon reserves by nearly 50%. One complication is that the oil is beneath 2000 to 3000 meters of water, making its retrieval a complex and likely expensive deepwater project. As of May 2008, Petrobras had contracted 80% of the world's deepwater rigs, driving dayrates up for the rest of the industry as remaining oil majors like Exxon Mobil and BP compete for the other 20%.
You can follow the info about pre-salt at:
http://www.presalt.com/
30 Mar 2010 - by PreSalt.com - Source: Agencia Brasil
The model of profit-sharing that will be generated by the exploration of oil layer in the pre-salt (subsalt), proposed by the government to Congress, for the benefit of states, already be approved in next July, according to the minister of Institutional Relations of the Presidency of Brazil.
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The performance of Vale is tied to what is going on in China for many year to come.
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September 1, 2010
SouthAmerica: Reply to Piezoe
Regarding the oil industry in Brazil I want to remind you of my posting on that subject right on this thread as follows:
http://www.elitetrader.com/vb/showthread.php?s=&postid=1910891&highlight=Francisco+Gros#post1910891
May 6, 2008
SouthAmerica: Reply to Robie380
I donât have any connections to Cosan, and I canât help you there. But here is a potential winner in the coming years â just keep in mind this new company.
I know Francisco Gros since the time when he was with Morgan Stanley in New York about ten years ago. The last time I got in contact with him it was about 3 years ago when he was the CEO of Fosfertil. But here is a summary of his background:
Francisco Roberto André Gros has been the Chief Executive Officer of Fosfertil-Untrafertil since May 2003. Mr. Gros served as Chief Executive Officer of Fertilizantes Fosfatados SA.
Mr. Gros served as Chief Executive Officer of Petrobrás since January 2002. In February 2000, Mr. Gros served as President of BNDES while serving as a Director of Petrobrás. And from 1991 to 1992 and also in 1981, Mr. Gros served as the President of the Central Bank of Brazil.
By the way, I am not involved in any way with this new company. I just know Mr. Francisco Gros and I know he is a reputable person besides having the knowledge of high finances which is necessary for anyone to be able to run such a company.
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âOGX Petroleo June IPO to Raise at Least $1.5 Billion, Gros Saysâ
By Adriana Brasileiro
Bloomberg News â April 7, 2008
April 7 (Bloomberg) -- OGX Petroleo e Gas Participacoes SA, the oil company owned by billionaire Eike Batista, plans to raise at least $1.5 billion in an initial public offering in June to fund exploration projects.
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