AMEC

Pre-salt finds in Brazil offer a once-in-a-century opportunity for the country to boost its coffers and tackle pressing social problems. If balanced with interests from other stakeholders, the oil will indeed be transformational. However, the mere thought of the money is already proving tempting for politicians, who risk smothering the golden goose with bickering and heavy-handed intervention. Brazil is sitting on some of the most promising oil discoveries in the world and the government is determined its national champion, Petrobras, should benefit. However, cack-handed interventions in fund raising and technical uncertainties are beginning to undermine investor enthusiasm for the stock in the short term.