May 22 (oilprice.com) Brazilian President Luiz Inácio Lula da Silva has explicitly linked oil exploration and rare-earth mining to Brazil’s national sovereignty, declaring that the country’s subsoil resources must be used to drive domestic industrialization rather than enrich foreign nations. Speaking at Petrobras’(NYSE:PBR) giant refinery, Refinaria de Paulínia (Replan), in São Paulo, Lula emphasized that Brazil must actively extract its natural resources in a bid to secure its geopolitical and economic future.
Defying foreign and environmental pressures, Lula has aggressively defended oil exploration in the Equatorial Margin, a highly prospective offshore region in northern Brazil considered the country’s next pre-salt frontier. The president has insisted that Brazil must responsibly occupy and explore the area and warned that external powers–specifically referencing U.S. President Donald Trump–could challenge the region’s security or try to influence it.
Lula announced R$37 billion (~$7.4 billion) in Petrobras investments through 2030, targeting exploration and production expansion, port infrastructure (particularly at the Port of Santos) and modernization of refining capacities. A portion of the funding will be dedicated to decarbonization, including biorefining and producing renewable diesel and aviation kerosene. The investments are expected to generate approximately 38,000 direct and indirect jobs.
The president reiterated that the state-controlled company must remain a public asset, serve as the country’s premier energy giant and utilize oil revenue to subsidize domestic fuel costs during international crises.
The Brazilian government has been utilizing surplus oil and gas revenues to mitigate the impact of global supply shocks on Brazilian consumers, including specific federal subsidies for diesel and gas to cushion against oil price spikes. Last month, the Lula administration halted the divestment of key Petrobras assets and announced billions in new, broader investments (including sustainable energy) to cement its status as a national champion.
A key highlight of Lula’s speech was his government’s rare earths roadmap.
Brazil holds the world’s second-largest rare-earth reserves, but has only mapped ~30% of its territory. Addressing the global race for critical minerals–vital for electronics, electric vehicles, and defense technology–Lula outlined a framework for foreign partnerships. The president declared that Brazil has “no vetoes and no preferences”, saying that companies from the United States, China, Germany, France or Japan are all welcome to invest.
Read full article: https://oilprice.com/Energy/Energy-General/Brazils-Lula-Doubles-Down-On-Oil-And-Rare-Earths-As-Brazils-Strategic-Future.html
Brazil Energy Insight 
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