Brazil's president pledged to exert more state control over immense offshore oil finds and funnel profits toward social spending, in proposing new rules for foreign investors needed to tap deeply buried reserves. The plan will significantly expand the state oil company's power over development of the fields and provide for a fund to help alleviate persistent misery and improve education and technology, President Luiz Inacio Lula da Silva said. The aim is to introduce a ‘shared production' regime to replace the concessions-based system; create a state oil company, Petrosal, to manage the reserves; setting up a fund to manage the government's revenues from the reserves and direct them toward social spending on areas such as poverty relief, education and infrastructure. (AP, Financial Times)

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