News from Brazil

Business & Economy

In Uncategorized on May 9, 2010 at 12:04 pm

BANKING

Banco do Brasil agreed to merge its insurance business in Brazil with the local unit of Spain’s Mapfre, creating the country’s second-biggest insurance group (Reuters).

OIL

Petrobras set a monthly output record for the company of 2.078 million barrels per day on average in April, Chief Executive Jose Sergio Gabrielli said (Reuters).

Brazil will ask oil companies operating its offshore fields to provide information on well control systems and to review their emergency response protocols in the wake of the BP Gulf of Mexico spill, the ANP energy regulator said (Reuters).

Petrobras has cut estimated production costs in the offshore subsalt fields by 50 percent over one year, a Petrobras director said, but declined to give a dollar figure per barrel (Reuters).

A new Brazilian independent oil company, Barra Energia, will seek to develop prospects in shallow water and onshore Brazil with $500 million in financing from First Reserve Corp (Reuters).

MINING

On May 2nd Norsk Hydro announced that it was acquiring the aluminium assets of Vale, the world’s second-largest mining company. In a deal valued at $4.9 billion, Norsk will add a mammoth bauxite mine, the world’s biggest alumina refinery and a large smelter to its own substantial aluminium business. In return the Brazilian mining giant will take a 22% stake in Norsk and pocket $1.1 billion in cash. A change of course for a Brazilian mining giant? Read the story in The Economist.

AVIATION

Aircraft maker Embraer expects to seal new deals with airlines in 2010, helping to keep its year-end firm order backlog near the 2009 level, Chief Executive Frederico Curado said (Reuters).

REAL ESTATE

Brazilian real estate developer PDG Realty agreed to take over rival Agre in an all-stock transaction valued at 2.43 billion reais ($1.4 billion), creating the nation’s largest builder (Reuters).

STEEL

CSN, Brazil’s largest diversified steel group, plans to invest up to 34 billion reais ($20 billion) through 2016 to grow in cement, energy, logistics and mining, Chief Executive Benjamin Steinbruch said (Reuters).

NUCLEAR ENERGY

Brazil is the world’s tenth largest consumer of energy, and nuclear energy accounts for a little more than three percent of the country’s electricity. Brazil’s energy policy has long been based on the use of renewable resources, primarily hydroelectric power, which currently generates about 92 percent of the country’s power (The Rio Times).

AGRICULTURE

Orange growers in Brazil, the world’s biggest producer, will harvest the smallest crop in seven years after rains hindered flowering, Cutrale said (Bloomberg).

BIOFUELS

Petrobras and Portugal’s Galp plan to invest $530 million to produce biodiesel for the European market (Bloomberg).

SHIPBUILDING

President Luiz Inácio Lula da Silva launched the first vessel under the Transpetro Fleet Modernization and Expansion Program (Promef) at the Atlântico Sul Shipyard (EAS), in the port of Suape, state of Pernambuco. The Suezmax-type vessel is a historical milestone for the Brazilian naval industry. This is the first major vessel built in Brazil to be delivered to the Petrobras System in 13 years. The last one was Livramento, the construction of which was commissioned in 1987 and took 10 years to be completed (Petrobras).

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s