Brazil’s Lula says oil find is path to end poverty
September 8th, 2008 | by admin |By Raymond Colitt
BRASILIA, Sept 7 (Reuters) - Brazil has found a path toeradicate poverty in its recent oil discovery but will notsquander money it does not yet have, the country’s president,Luiz Inacio Lula da Silva, said on Sunday.
State-controlled firm Petrobras(PETR4.SA: Quote, Profile, Research, Stock Buzz)(PBR.N: Quote, Profile, Research, Stock Buzz) surprisedthe oil world last year with the second-biggest oil find in 20years.
Since then Latin America’s largest country has been grippedby a frenzied debate over how best to manage its new oilwealth. Despite years of strong economic growth under Lula,Brazil is still troubled by glaring poverty and inequality.
The tapping of the reserves with a test well on Sept. 2symbolized “the opening of a direct bridge between naturalwealth and the eradication of poverty,” Lula said in anationally-televised address commemorating Brazil’sindependence from Portugal in 1822.
Oil wealth would be spent primarily on education anderadication of poverty, creating “timeless and endless wealth”for the Brazilian people, Lula said.
The former metal worker, who has spoken about oil almostdaily in recent weeks, said Brazil was seeing the crowning of asuccessful policy of growth and income distribution.
Lula said exact reserves were still unknown in the fieldthat is 500 miles (800 km) long by 125 miles (200 km) wide offBrazil’s southern coast.
“But one can say with full certainty, (they) will makeBrazil one of the world’s largest oil and gas producers,” Lulasaid.
