Archive for the ‘Brazil Economy’ Category

Brazil Oil Update

February 12, 2010

Brazil OGX sees up to 900 million barrels in OGX-3 well

Brazilian oil start-up OGX (OGXP3.SA) said Wednesday it estimated recoverable oil reserves from its OGX-3 well at 500 million to 900 million barrels.

This is OGX’s second announcement of drilling tests from its offshore wells this week. On Monday, it said recoverable reserves from drilling at the OGX-4 well were seen at 100 million to 200 million barrels.

The OGX-3 well in the BM-C-41 concessionary block in the Campos basin off Rio de Janeiro’s coast has a productive potential of 3,000 barrels a day (bpd), the company said in a market filing.

The vertical well is depth reached 4,084 meters to carbonate rock layers. The sour to medium grade crude from the well is ranked at 19 to 20 degrees on the API scale.

For those in the oil industry looking to relocate to Brazil, contact Rent in Rio.

Brazil to Become Top Property Market

December 4, 2009

Brazil is set to become one of the hottest property markets of 2010. As one of the world’s fastest growing economies, Brazil has seen a large increase in Foreign Direct Investment. With the country set to host the 2014 football World Cup and 2016 Olympic Games, there will be improvements in infrastructure and huge growth in the construction industry.

Foreign investors are flocking to Brazil to view prime properties with world class views, snatching up real estate in anticipation of future capital growth.

Brazil Property Specialist, Colordarcy have seen Brazilian property enquiries increase by 60%, since the Olympic announcement. The company has responded by launching a consultancy service to help clients to source the best real estate deals in Rio de Janeiro.

Loxley McKenzie, Chief Executive at Colordarcy – is predicting an annual increase of 20% per year until 2016.

Mortgages will soon be available to international buyers and this will create a further boost to Brazil’s property market.

Investment banking firm Goldman Sachs believes that Brazil’s economic growth could outstrip that of the other BRIC (Brazil, Russia, India and China) nations over the next few years.

Brazil’s economy is widely expected to become the fifth largest in the world by the time the Olympic Games kicks off in 2016, and yet property and land prices still remain a fraction of those found in more developed nations.

The Brazilian president Luiz Inacio Lula da Silva has already pledged to spend up to £11.5bn ($17.4bn) on building a million new homes in Brazil between now and 2011.

If you are looking to visit or relocate to Rio, represents Rio de Janeiro’s highest quality apartments, flats, penthouses, and hotels.

Brazil’s Unemployment Rate Continues to Drop

December 3, 2009

Brazil’s unemployment rate dipped again in October, this time returning to pre-crisis levels and hinting at a strong rebound ahead for Latin America’s biggest economy.

The jobless rate fell to 7.5% in October, the same as in October a year ago and slightly below forecasts, the Brazilian Census Bureau, or IBGE, said Thursday. Unemployment was 7.7% in September, down from 8.1% in August.

Jankiel Santos, an economist at Sao Paulo’s BES Investimentos fund, said October’s data reinforced the view that “labor market conditions remain quite favorable and should lend a hand to the Brazilian economy to keep on expanding in coming months.”

IBGE October data also showed average real incomes were 3.2% higher than October last year, indicating that the number at work enjoyed higher spending power and could thus more easily contribute to Brazil’s consumer boom.

Cimar Azevedo, IBGE director for employment data, pointed out that the average formal employment rate was 44.9% of the workforce in the January through October period, higher than the 44.4% level in the year-ago comparison.

October’s jobless rate declined for a third consecutive month, pointing to a steady rate of economic recovery, with better prospects ahead in the run-up to Christmas.

Roberto Padovani, chief Latin American strategist for WestLB Bank, predicted a strong rebound for Brazil in 2010, with economic growth reaching 4.8% after a 0.2% decline in 2009. “The expansion expected for next year will be fueled mainly by domestic consumption,” Padovani said.

November and December employment figures will likely be lifted significantly by the festive season, said Azevedo.

Last December the unemployment rate was just 6.8%.

But this year, significant tax breaks on consumer durables along with easier credit facilities and conditions should create even more work, especially in retail.

More employment opportunities are expected to be created in Rio with the upcoming influx of tourism expected to occur in the next few years due to the FIFA World Cup and the 2014 Olympics. Plans to improve upon existing venues and infrastructure as well as new constructions for these events will have a large effect on the economy.

The recent success of Brazilian oil and gas company OGX Petroleo e Gas Participacoes SA is also set to bring many more employment opportunities to the city.

Those looking to relocate to Rio to take advantage of these opportunities, or to book accommodations for any of the upcoming international events the city is set to host, contact Rent in Rio today.

Brazil to Reduce Carbon Emissions

November 20, 2009

Brazil’s President Luiz Inacio Lula da Silva announced Monday that he expects the leaders from the Asia-Pacific Economic Cooperation (APEC) to commit to a reduction of greenhouse gases.

In his weekly radio show, Lula expressed his worry on the matter of climate change and said that he expects the APEC leaders to advance on the discussions, in order to reach a proposal to be presented to the United Nations Climate Change Conference (COP-15), which will take place in December in Copenhagen.

President Lula noted Brazil’s commitment on the matter last week. The country announced its intention to commit to a reduction of 36.1 to 38.9 percent in its greenhouse gas emissions by 2020.

According to the government plan, about 20 percent of the reduction will originate from the reduction in the deforestation in the Amazon Rainforest region, while the other 20 percent will result from actions to protect the Brazilian savannah, to promote the use of green steel and biofuels and to increase energy efficiency.

President Lula said that Brazil’s commitment indicates that things are going well in the country, including a sign of economic growth and progress.

Brazil stocks ended higher Tuesday boosted by Ministry of Finance comments of higher and steady economic growth ahead. Brazil is also anticipating growth due to an influx of tourism to Rio de Janeiro. The city is making efforts to prepare the city for the Olympics and the World Cup, including making drastic changes to it’s transportation infrastructure.

Brazil’s benchmark Ibovespa stock index ended 1.17% higher at 67,405 points on the Brazilian Stock Exchange, its highest closing level since June last year.

Traded volume was a tad above average at 6.6 billion Brazilian reals ($3.84 billion).

Finance Minister Guido Mantega said Tuesday Brazil’s gross domestic product could grow steadily between 6% and 6.5% a year in the period 2010 through 2016, with investment jumping 13% to 15% next year, the Estado news agency reported.

The Rise of Rio Rentals

November 12, 2009

RENTINRIO1The apartment rental market in Rio is thriving now more than ever. Dan Babush, president of, recently returned from a one week vacation. While he was away, our vice president and chief of images were in Brazil taking photographs and finding new apartments, so the emails were not being answered as quickly as they normally would. As a result, Dan returned to find 1,800 requests sitting in his mailbox.

“There are a few factors underlying this trend,” says Dan. “One: It’s difficult for the tourists to find what they want because many of the best apartments in Rio have been absorbed by various oil service and other companies that are getting in on the gold ‘oil’ rush and relocating their employees. Two: The Olympics. Since the day that they were announced tourist interest has increased dramatically.”

“As tourists are find that hotel prices have moved up, they believe there will be savings, which there often is, in renting apartments in Rio. And then there are the people who want the ultra high luxury huge 600 sq meter (6500 sq ft) apartments with private pools overlooking the ocean.”

RENTINRIO2Babush says, “The demand for the $1500 and up apartment has exploded as has the demand for the low end one bedroom. Across the board we are inundated with requests for Rio apartments. We are also continually receiving requests from those same oil service companies and the various services that work with them such as accountants, attorneys, etc. that are placing their employees. We are currently working on over 40 such requests and relocation now makes up roughly 35 percent of our business.”

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Rio Business Update: Growth on the Horizon

November 12, 2009

Rio De Janeiro Has ‘Biggest Concentration Of Billion Dollars In Investment Per Square Kilometer’

investments by sectorA recent investment study by FIRJAN of Brazil’s Rio de Janeiro found that the area is about to experience a massive influx business investment, one that could rival any other place in the world in terms of dollars per square kilometer.

Although the Olympics will obviously make a large contribution to the economy, it is not the main investor. Reports show that Rio will be driven by Petrobas investment.

The New York Times states: An August 2009 study, “Decision: Rio Investments 2010-2012,” published by the Rio de Janeiro State Federation of Industries, predicted that public and private investment would pump $60.3 billion into the state over the next three years, not counting the additional $14.2 billion budgeted for the 2016 Olympic Games.

“I would dare to say that, probably, we have the biggest concentration of billion dollars in investment per square kilometer in the world,” said Cristiano Prado, the author of the industry federation’s study. “And more will come together with the Olympic Games in the next years.”

If you are relocating to Rio as a result of a business investment and the growing economy, contact Rent in Rio to make your transition to life in Rio a comfortable and enjoyable one and find you an apartment you love.

More Oil Off the Coast of Brazil

Brazilian oil and gas company OGX Petroleo e Gas Participacoes SA (OGXP3.BR) went three-for-three in its drilling campaign Thursday, with another well showing signs of hydrocarbons off Brazil’s coast.

The independent driller said that its 1-OGX-2-RJS well in the BM-C-41 block showed the presence of hydrocarbons. That was OGX’s third discovery since October, a stunning success rate for an oil company that was started from scratch in 2006.

“This new evidence of hydrocarbons confirms the existence of an active prolific system in this area, and contributes to a better understanding of the geological attributes of the region,” OGX CEO Paulo Mendonca said in a statement.

Thursday’s discovery was OGX’s second successful well drilled in the Campos Basin, where more than 85% of Brazil’s crude oil is produced. brazil_oil_platform_petroba

In October, the Ocean Ambassador rig was responsible for finding the Vesuvio prospect. Consultants earlier this week pegged recoverable reserves at Vesuvio to be about 1.4 billion barrels of oil equivalent.

Vesuvio lies in the BM-C-43 block, but at shallower depths. The Ocean Ambassador rig operated in 140 meters of water at Vesuvio but the final well depth was 2,347 meters.

OGX also holds a 100% stake in the BM-C-43 block.

Also in October, OGX said its first-ever well tested positive for hydrocarbons. The 1-MRK-2-SPS well, dubbed Abacate-1, is in the BM-S-29 block.

The BM-S-29 block lies in the promising Santos Basin, off the coast of Rio de Janeiro and Sao Paulo states. Nearby blocks have recently yielded discoveries that have increased positive expectations for OGX’s drilling.

OGX holds a 65% interest in the BM-S-29 block, with partner and block operator Maersk Oil do Brasil Ltda. holding the remaining 35%.

The company’s bright outlook has caused it to review previous plans with an eye toward accelerating its already aggressive drilling campaign.

Earlier this week, OGX CFO Marcelo Torres said that the company will drill 79 wells over the next four years, up from previous plans for 51 wells. In 2010, OGX will drill 27 wells. Some 26 wells will be drilled offshore, with a single onshore well planned for recently acquired concessions in the Parnaiba Basin.

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Brazil Petrobras Reports Alagoas Oil, Gas Discovery To ANP

November 6, 2009

Brazil OilBrazilian state-run energy company Petroleo Brasileiro SA (PBR), or Petrobras, reported an oil and natural gas discovery at an onshore block in the Alagoas Basin late Thursday.

The discovery was made at the inland BT-SEAL-2 block in the Alagoas Basin, according to data on the National Petroleum Agency’s, or ANP, Web site.

Petrobras reported the 5BRSA774AL wildcat well tested positive for traces of oil and natural gas. The well was drilled by the Sonda Convencional 109 rig to a total depth of 2,020 meters.

In recent years, the global economy has been noticeably affected by the pressure on the world’s largest oil producers to keep up with the ever-increasing demand of fuel supply. While countries such as Iran and Mexico struggle to remain exporters, the 2007 discovery of oil in the Santos Basin off the coast of South America, 170-300 miles from Rio de Janeiro, may turn Brazil into the world’s largest oil supplier and lead it to joining OPEC.

The ongoing discovery and production of oil and natural gas in the Santos and Alagoas Basin will bring a plethora of businesses looking to relocate in Rio de Janeiro. Rent in Rio provides luxury and affordable long term leases in and around Rio.

Brazil Real Estate Market Set to Boom

October 29, 2009

Brazil Real EstateBrazil is set for a major property boom when international buyers return in large numbers as upcoming international events fuel Brazil’s growing economy.

Executive chairman at construction firm Confide Brasil Javier Fernandez-Pena says that in recent years property developers have been keeping international buyers in mind. However, the current economic downturn has diminished the amount of developments. Yet the growing domestic sector has stepped into the picture and is helping the market to keep growing.

Mr. Fernandez-Pena predicts good things for the future, “International buyers will come back to Brazil as it is starting to be seen as fashionable or the location of the next real estate boom.” He suggested that 2016 Olympic host Rio de Janeiro will offer a “tremendous opportunity” to attract such buyers.

Mr. Fernandez-Pena was one of a number of speakers at the Why Brazil? Why Now? event in London.

Among the others at the event were coordinator for inward investment at the ministry of tourism Laercio Souza, who noted that thanks to the domestic market, towns such as Santa Cantarina and Florianopolis are already emerging as popular second-home destinations.

Brazilian bank BNDES funds 2014 World Cup Stadiums

October 29, 2009

Brasil 2014On Wednesday Brazilian development bank BNDES announced that it would provide nearly $3 billion for improvements to venues for the World Cup.

The announcement contradicts a bid promise which said private funds would only be used for stadium redevelopment as well as pledges that the bank would only fund infrastructure development for the event.

Each stadium would be allocated a maximum of $230 million. According to reports, not one of the 12 venues meets FIFA’s standards for a World Cup.

The Maracana Stadium, likely the 2014 final venue, will undergo a major upgrade next year and many other stadiums are being rebuilt virtually from scratch. New grounds will be constructed in Recife and Natal.

BNDES yesterday approved a similar amount of money for infrastructure redevelopments around the venues.

The president of the Brazilian Football Confederation Ricardo Teixeira says the venues aren’t the only sites needing upgrades for the World Cup and that the country’ airports also require major upgrades. Redevelopment of the airports is scheduled to take place from 2011 to 2013.

Rentals and hotels are already being booked for the upcoming World Cup and Olympics. The government is hoping for the major influx of tourism to change the face of a beautiful city with a rich culture, yet also marked by a dark side of violence. Brazilian politicians promise an eradication of the drug cartels which run the slums in time to host these popular global events.

Brazil’s Unemployment Rate Down

October 23, 2009

Brazilian FlagBrazil’s unemployment rate fell to 7.7 percent in September from 8.1 percent in August, the Brazilian Institute of Geography and Statistics (IBGE) announced on Thursday.

It was the lowest unemployment rate since the 6.8 percent registered in December 2008.

The unemployed population in the country totaled 1.8 million in September, down 4.8 percent from August and stable compared with September in 2008. The employed population totaled 21.5 million, stable if compared with both August and September 2008.

In most sectors, the employed population remained stable in September. In the education and public administration sector, however, the employed population was up 3.5 percent from September 2008, and in the transport and cleaning sectors, the employed population was up 2.6 percent from August.

The Brazilian workers’ average monthly income stood at 1,346 reals (about 718 U.S. dollars) in September, up 0.6 percent from August. Compared with last September, average salaries were up 1.9 percent, reflecting rise in the minimum wage.

The average per capita household income stood at 876 reals (506 dollars) in September, up 0.5 percent from August and 2.4 percent from the same period in 2008.