Brazil Lula says subsalt will strengthen Petrobras
BRASILIA, Aug 28 (Reuters) - President Luiz Inacio Lula da Silva said on Thursday that recent massive oil discoveries off Brazil's coast will make state-run energy company Petrobras (PETR4.SA)(PBR.N) stronger.
"The company, which took more than 50 years to achieve (oil) self-sufficiency, struck those huge subsalt reserves that will strengthen its position on the global stage," Lula said in a speech at the presidential palace.
Brazil's government is studying ways to take greater control over the oil industry following the discoveries made by Petrobras. For more details, click [nN28481717] and [nN28445012]
Lula said he instructed a government commission that is discussing possible changes to Brazil's petroleum law that the country should use the new reserves to become an exporter of oil derivatives -- not just crude oil.
He said he also made it clear to the commission that the oil reserves belong to Brazil, not Petrobras, and stressed that money from the fields should be invested in education and to reduce poverty. (Reporting by Fernando Exman, Translated by Inae Riveras; Editing by Walter Bagley)
