CATTLE
About a third of Brazil’s 200 million-strong cattle herd is in the Amazon area, where most of its growth has occurred in recent years, leading to criticism that the industry is a major culprit in illegal deforestation (Reuters).
OIL
Brazilian government advisors “strongly support” a production-sharing model to develop massive offshore oil reserves as the country considers revamping its oil law to boost state income from new-found reserves (Reuters).
Petrobras may need benchmark oil prices near $60 a barrel to profitably tap Brazil’s massive subsalt offshore finds, Cambridge Energy Research Associates (CERA) said (Reuters).
Petrobras may suffer as lawmakers probe tax fraud allegations at Brazil’s state-controlled oil producer, BNP Paribas and Banco Geracao Futuro de Investimentos said (Bloomberg).
Spanish oil major Repsol YPF is seeking a buyer for its 30 percent stake in Brazil’s Refap refinery, which it bought in 2001 in an asset swap worth nearly $1 billion, a source close to the operation (Reuters).
Brazil may auction the rights to offshore oil fields in its so-called pre-salt region as soon as 2010, Mines and Energy Minister Edison Lobao told the Financial Times.
ELECTIONS
Brazil will hold elections in October 2010 to choose the successor to President Luiz Inacio Lula da Silva, who is barred by law from seeking a third consecutive term. Parties will formally nominate their candidates late this year. Here are some of the key names to watch in the race.
BUSINESS
Bristow Group Inc, which provides helicopter services to the offshore energy industry, said it acquired a 42.5 percent stake in Brazil’s Lider Aviacao Holding S.A for $174 million, helping it expand its helicopter operations in Brazil (Reuters).
Braskem, Latin America’s largest petrochemical company, and Venezuela’s state-owned Pequiven are aiming to build a plant in Brazil’s northeastern Bahia state (Reuters).
Brazil’s economy isn’t in a recession and demand is at a “healthy” level, Fiat SpA Chief Executive Officer Marchionne said. The Italian firm stands by its commitment to invest “billions of euros” in South America in the next four years, Marchionne said. Fiat reopened a tractor factory in Brazil that was closed in 1988 because “this growth regime will continue in the foreseeable future,” Marchionne said (Blooomberg).
Odebrecht construction and engineering company will receive a 1 billion- real ($494 million) loan frombanco Santander SA and four other banks to help fund its investment in a Sao Paulo toll road (Bloomberg).
FINANCING
Brazil’s state-run development bank will loan Venezuela as much as $4 billion to finance projects. Brazil and Venezuela signed a letter of intent for the financing earlier this week. A spokeswoman at BNDES, as the bank is known, said the loans would be provided for contracts won by Brazilian companies (Bloomberg).
STEEL
Brazilian steelmaker CSN, betting on a boom in Brazil’s housing and infrastructure industries, is planning to unveil a new line of products for construction by 2010 (Reuters).
