Brazil's Big Oil Bet

As an update to last week’s oil company earnings roundup, I bring you Brazil’s state-owned oil company, Petroleo Brasileiro, affectionately known as Petrobras. It may seem like same story, different day, as Petrobras announced a 20% drop in first-quarter net profits compared with Q1 2008 (due to – yawn – the global economic slowdown, lower oil prices and lower demand).

But there are some interesting things happening in Petrobras – mainly an increase in capital spending to the tune of $28.6 billion this year – up from $23 billion last year.

Why the massive billions in capital?

One word – Tupi.
SeekingAlpha