Oct 11/Reuters - The approval of a federal spending cap in a first-round vote shows Brazil is tackling its fiscal woes and is on its way to entering a sustainable growth path, Finance Minister Henrique Meirelles said on Tuesday. Meirelles said the mere expectation of a budget reform has lifted confidence, but stressed that the... Continue Reading →
BP Sees Oil Demand Growth Swamping Impact of Electric Cars
Rising demand for oil over the next two decades is likely to overwhelm the impact of the electric car on crude markets, said Spencer Dale, chief economist for BP Plc. “They’ll have a huge impact in terms of air quality, but it’s not a game changer over 20 years even with aggressive electric vehicle penetration,’’... Continue Reading →
Petrobras faces challenge of decommissioning old platforms
With 74 offshore platforms with more than 25 years of operation, Petrobras is expanding the development of their decommissioning projects, demobilization and removal of equipment at the end of an offshore oil production system. Under development or planning are the Cação fields in the Espirito Santo Basin and Marlim fields, in the Campos Basin. Solange... Continue Reading →
Temer Scores Big Win With First Vote of Brazil Spending Cap
Brazil’s President Michel Temer secured his most important congressional victory to date as the lower house overwhelmingly supported a constitutional amendment that will cap growth in public spending as part of the government’s efforts to tackle a near-record budget deficit. Lawmakers approved the controversial proposal with 366 votes in favor, while 111 voted against. The... Continue Reading →
‘Junk’ sovereign rating puts ceiling on Brazil bull market
Brazilian financial markets are unlikely to repeat their dramatic rally in 2016 even if Congress approves a business-friendly reform agenda during the coming year, as asset values are nearly at the ceiling of the country's junk credit rating. Brazil's bonds, stocks and currency have been among the best-performing assets in the world this year as... Continue Reading →
Lula charged over Odebrecht Angola work in Brazil graft probe
Corruption charges against former Brazilian President Luiz Inacio Lula da Silva piled up on Monday as prosecutors accused him and Marcelo Odebrecht, ex-CEO of engineering group Odebrecht SA, in an alleged bribery scheme related to contracts in Angola. Lula already faced several other charges related to a sweeping kickback probe at state-run oil company Petrobras,... Continue Reading →
Brazil to Shun Populists as Economy Recovers, Meirelles Says
Brazilians will start to see the benefits of an economic recovery in 2017 and there are no signs they are inclined to support populist candidates, Finance Minister Henrique Meirelles said on Monday. In an interview at Bloomberg headquarters in New York, Meirelles also said that he supports Petrobras’s plan to adjust fuel prices in line... Continue Reading →
Petrobras Says Deep-Water Opening Luring Big Oil to Brazil
International oil companies are reaching out to Brazil after it opened its most promising offshore region to increased competition, a move welcomed by Petrobras Chief Executive Officer Pedro Parente as he seeks partners to spread investment costs. Producers rushed to contact Houston-based Brazilian officials last week after Congress removed a requirement that Petrobras control operations at... Continue Reading →
Duke to Sell Brazil Assets to Three Gorges for $1.2 Billion
Duke Energy Corp. agreed to sell its Brazilian assets to China Three Gorges Corp. for $1.2 billion as the utility owner looks to focus on its regulated U.S. power business. Proceeds from the deal will be used to reduce Duke Energy holding company debt, the Charlotte, North Carolina-based company said in a statement Monday. Duke,... Continue Reading →
Brazil is years away from regaining investment grade: S&P
The initial approval of a public spending cap is a step in the right direction, but it will still take years and other tough reforms for Brazil to regain its coveted investment-grade rating, a senior analyst with S&P Global Ratings told Reuters. In a late Friday telephone interview from the sidelines of the International Monetary... Continue Reading →
Brazil Energy Insight 