Brazil will create a special fund to handle revenues from potentially enormus oil reserves found last year, Guido Mantega, the countrys finance minister, signaled Wednesday.
The minister said oil revenues from the pre-salt layer off São Paulo state – expected in three to four years – would go into a special fund possibly similar to one operated by Norway.
Brazilian President Lula da Silva was reported Tuesday to have argued that revenues from the proposed new national oil company should be spent on education and poverty relief.
Analysts estimate that recent finds could hold as much as 55 billion barrels of oil. If proven, that could transform Brazil into a major oil exporter. The oil lies off the Rio de Janeiro coast, some 2.000 meters beneath the ocean surface and a further 5.000 meters below the ocean floor.
Finance Minister Mantega said, that the government may eventually direct the revenues toward a planned sovereign wealth fund, or may create a separate fund exclusively to receive pre-salt revenues.
Mantega further said Wednesday that the government intends to invest part of the income from newly found sub-salt oil reserves abroad to prevent inflation and the currency from appreciating.
Kilde: www.worldbank.org
