InvestorScan – Brazil

Say goodby to the third quarter and hello to the fourth quarter. The last quarter in 2013 is for some investors is a make it or break it quarter. For others a time to take profits and reduce taxation. Still others investors evaluate their current portfolio performance and begin to select investments that we expect to serve us well in 2014.

We though this would be a good time to let our readers read what we read. Ideally it is best to have a firm knowledge of the countries in Latin America from direct investing experience, travel, or scholarship. For the most peolple we have to read. Read all of the usual suspects, anually reports, balance sheets, historical fumdamental analysis, and the charts, yes a whole lot of charts. Additionally, it is equally import to read local publications.

Understanding the social backdrop of a country, and accessing legislative risk cannot be ignored by the international investor. Herewith are introductions and hyperlinks to a few of our print sources throughout the region.


From MercoPress

Petrobras makes ‘beautiful’ discovery and generates a new promising oil province

Brazil’s Petrobras and its Indian partners have made a “beautiful” oil discovery off Brazil’s northeast coast, Sergipe-Alagoas basin, and it will produce a minimum 100,000 barrels of petroleum a day starting in 2018, the company’s CEO said on Friday.

Maria das Graças Foster declined to say how big the discovery is but said it was an important new oil “province” for Brazil and that its large potential reserves would create a rush of jobs and activity to the area that will need to be managed carefully.


How Brazil’s richest man lost 97% of his fortune in less than two years

In 2010, Eike Batista announced that he would soon become the world’s richest man, and it didn’t seem particularly hyberbolic. Brazil’s economy was thriving, and investors around the world were lining up to invest in his commodities empire, which consisted of six highly successful public Brazilian companies, including OGX, the country’s second largest oil company, and MMX, one of its largest miners. By 2012, his wealth stood at some $30 billion, making him the seventh-richest man in the world.

And then the last 18 months happened.

OVL blocks Chinese bid, buys stake in Brazilian oilfield

ONGC Videsh (OVL) has exercised its pre-emption rights to block China’s Sinochem Group from buying 35 per cent interest in a Brazilian oilfield for $1.54 billion.

OVL, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), in collaboration with Royal Dutch Shell will buy the 35 per cent stake in block BC-10, known as Parque das Conchas, that Brazil’s Petrobras had planned to sell to Sinochem, sources with direct knowledge of the development said. While the Indian firm will pick up 12.08 per cent stake, the remaining 23 per cent will go to Shell.
The BC-10 block off Brazil lies in ultra deep water of 2,000 metres and began production in 2009. The Ostra field in the block pumps about 21,000 barrels per day of oil.

Leveling the Playing Field for Legal Timber in Brazil

Submitted by Ruth Nogueron and Loretta Cheung

Brazil is one of the most biologically diverse countries in the world. What is less known is that the country is the fourth largest industrial roundwood (timber left as logs, not sawn into planks) and wood pulp producer and ninth largest paper producer in the world. Brazil’s forest sector contributed 5 percent to the national gross domestic product in 2012. Brazil’s forests are not only home to communities and a haven for biodiversity, they are also part of the country’s economic backbone. Brazil’s government has made impressive progress towards balancing forest protection and production. In 2012, deforestation in the Brazilian Amazon dropped to its lowest rate in more than two decades. Brazil’s National Institute for Space Research

Volkswagen unveils major Audi investment in Brazil

Germany’s VW car group has said it will resume the production of Audi cars in Brazil, seven years after it closed a plant of its luxury subsidiary. VW will also invest heavily in expanding its own operations there. The Volkswagen group is planning to restart the production of Audi cars in Brazil from 2015, Germany’s biggest carmaker announced Tuesday. Under plans to prepare for the manufacturing of Audi Q3 and A3 Sedan models in its Curitiba plant, about 150 million euros ($200 million) would be invested, Audi Chief Executive Rupert Stadler said in a statement.

“By producing in Brazil, we will create the basis for further growth in the region,” he added


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