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Brazil set to unveil unpopular oil-exploration law

Brazil's president is set to propose a new law that would give the state-run oil company control over any new oil discoveries — but the measure is already opposed by at least three key state governors.
/ Source: The Associated Press

Brazil's president is set to propose a new law that would give the state-run oil company control over any new oil discoveries — but the measure is already opposed by at least three key state governors.

President Luiz Inacio Lula da Silva also wants to use state oil profits to create a poverty-reduction fund.

The governors of the three states where most of Brazil's oil operations are based oppose the plan, saying it does not provide their governments with enough money.

The governors from Rio de Janeiro, Sao Paulo and Espirito Santo are meeting with Silva on Sunday to seek a compromise.

The proposed oil law is expected to be made public Monday. It will need congressional approval.