Page 38: of Marine Technology Magazine (January 2011)

38 MTR January/February 2011 economic development projects in the country, while not infringing upon the rights of other operators already active offshore. The social fund is also one of the main items in the new model. The fund will primarily be used for health, basic and higher edu- cation, along with scientific and technological research.

Petrobras Share Offer

Brazilian Government Buys More Petrobras Shares

The Brazilian government has increased its Petrobras shares from 40% to around 48%, during the recent

Petrobras shares offer, said Secretary of Finance, Guido

Mantega, at the São Paulo Stock Exchange (Bovespa).

The funds from the share offer will also reduce Petrobras' net debt-to-equity ratio, which has increased to nearly the company's self-imposed 35% limit. The capital influx will once again allow Petrobras to raise more funds on the international debt markets, as the company will most probably need even more money to invest in the growing pre-salt frontier. “The operation was a great success, even beyond our expectations, at a moment of adverse conditions, as there is still a world crisis. Adding up all the government part- ners, BNDES, the Sovereign (Social) fund and State, our participation goes to approximately 48%,” said the

Secretary of Finance. Brazil´s President Luiz Inácio “Lula” da Silva said, “The Petrobras share offer is a government safeguard to avoid that the riches be lost in a labyrinth of misuse and equivocal interests”. President Lula also exclaimed that to the eyes and ears of the world, the word

Brazil is synonymous with the most promising develop- ment frontier in the twenty-first century.

While Brazil’s political and financial leadership hails the movement, political and corporate entities outside of

Brazil eye the moves with a more cautionary note, to see if the increased investment indicates a higher level of gov- ernment meddling with Petrobras administration and an overall increase in government control over company busi- ness decisions.

On speaking of the reasons why the market supported the shares offer, Petrobras President José Sergio Gabrielli

The P-57 is equipped with unprecedented technolo- gy for collection of 4D seismic data, installed per- manently on the seabed. It permits greater speed in obtaining seismic data.

Subsea separation system at work in Brazil. (Sour ce: illustration FMC T echnologies)