Sturm College of Law LLM Students From Brazilian Take Part in Conference Addressing Brazil-U.S. Tax Issues

Recently two Brazilian LLM students, Leandra Zanqueta (on the left) and Taciana Marques (on the right), attended a Brazilian Conference promoted by the International Fiscal Association, USA-BRASIL Branch.

According to Ms. Marques:

"We had the pleasure to be the representatives of DU at the conference. During the conference we had the opportunity to discuss the challenges that both Brazil and USA have been facing to compose a bilateral agreement about taxation between the countries.

"There is an issue regarding the agreement between Brazil and US as regards the exchange of information relating to taxes. We also discussed the role of incorporating in the American state of Delaware for multinational companies, mainly related to the fact that so many Brazilian corporations are formed in Delaware. It was a entire panel discussing the acquisition of companies in both countries and the issues arising because of the Brazilian infrastructure development.

"All and all, this conference was important for Leandra and me to interact with the potential investors from Brazil and the U.S."

Brazilian LLM Student Glauce Santesso Coelho Wins "2010 Outstanding LLM Student of the Year"

Glauce Santesso Coelho, an LLM student from São Paulo, Brazil, has earned the "Outstanding LLM Student of the Year" for 2010. The award is presented on an annual basis to the student with the highest grade point average in the LLM program.

Ms. Coelho, a graduate from the prestigious Pontifícia Universidade Católica de São Paulo, is a licensed member of the Brazilian Bar. Her professional career began at two of the most well-known and well-respected law firms in Brazil, Demarest & Almeida and Mattos Filho Advogados. At these firms she gained knowledge and expertise about civil and business law.

In 2008, Ms. Coelho moved to the U.S. with her husband, Eber Coelho, to pursue an international career. In August 2008 she began her studies at the Sturm College of Law where she has gained significant expertise in the key areas of environmental and natural resources law and policy.

Don Smith, Director of the LLM program said, "Glauce Santesso Coelho is one of the finest LLM students ever to study in the University of Denver graduate program. It has been a pleasure for all of us at the law school to have her as a student and soon as a graduate of the program. Ms. Coelho has a very promising career ahead of her. She will be a leader in Brazil as her home country becomes one of the most important and influential economic powers in the world."

Brazil: A Future Energy Superpower?

An interactive map published in the Financial Times ("Brazil: A Model for Modern Energy," July 6, 2009) clearly illustrates why Brazil may soon be among the world's energy superpowers.

As the FT states:

"The discovery of potentially massive reserves of oil and gas off its coast in 2007 seems set to transform the country’s position as an energy superpower and the government says it plans to join Opec in the near future. However, Brazil already sources most of its electricity from hydroelectric dams and most cars in the country have the option to use ethanol as fuel, which can be sourced from sugar cane. As a result, the Latin American giant appears to be perfectly set up to deal with the energy challenges of the next century."

The map can be switched between fossil fuel resources and power and energy use.

We are all aware that the European Union and (belatedly) the U.S. like to bang on about what they are doing to address energy issues, but frankly they are poor distant cousins to Brazil when it comes to energy resources on their home soil. (That's not to suggest that they never had any natural resources, but rather that today they have a relatively limited amount.)  

Have a look yourself and draw your own conclusions.

Brazil Set to Hold First Wind Farm Auction

Word comes from Brazil that the government will hold its first wind power auction later this year.

According to the Rio de Janeiro law firm of Schmidt, Valois, Miranda, Ferreira & Agel, "This first auction has a main goal of giving the government the necessary information on the potential market in Brazil for wind power, as well as to start development of wind farm projects." The firm's analysis of the next steps in the auction process can be accessed here.

Brazil is already a world leader in terms of biofuels. Will wind be next?

Brazilian "Pre-Salt" Oil Reserve Legislation Imminent?

The Brazilian Energy Ministry confirmed Wednesday that legislation is being drafted that will set the terms for the development of the "pre-salt" oil reserve situated in the Atlantic Ocean.

As reported by the Financial Times ("Brazil Readies Oil Reserves Law," June 11, 2009), three key legislative provisions are:

A state-owned company would be established to own the reserve and grant concessions;
A system of "production sharing agreements" would be created to replace the existing system allowing companies to own the oil they discover;
Revenues generated by the government would be used for social spending projects.

The regulatory structure being considered by Brazil is patterned after a similar one put in place by Norway when the North Sea oil reserve was discovered several decades ago.

The full magnitude of the pre-salt oil reserve remains uncertain although the energy ministry has said that it is now about 50 billion barrels and may reach considerably higher. In comparison, Saudi Arabia has about 270 billion proven barrels, Venezuela about 100 billion barrels, and the U.S. about 25 billion barrels.

Brazil: The Next Big Oil Opportunity?

The government of Brazil will begin selling concessions for the right to develop the "pre salt" oil reserves off the coast of Sao Paulo state as early as next year.

This is particularly important news since the country suspended the selling of concessions in 2007 when enormous oil reserves were found in Brazil's territorial waters.

Edson Labao, Brazil's mines and energy minister, has told the Financial Times ("Brazil to Open Up Vast Offshore Fields," May 29, 2009), "We will certainly be holding auctions next year. this means the oil companies can begin to prepare their treasury reserves."

The FT article put this development in more context:

"The new reserves promise to turn Brazil into an important oil exporting nation and further highlight the differences between Petobras, Brazil's publicly traded but government-controlled oil company of growing international status, and the declining fortunes of its regional rivals Pdvsa of Venezuela and Pemex of Mexico."

Before the selling of concessions begins, however, the government needs to establish a new regulatory framework for development in this area. This may be problematic bearing in mind that the country will have national elections in 2010 and the Congress may be unwilling or unable to reach agreement before then.

In any case, it is time to start saving. I have $100 I plan to bid.

Brazilian Companies Embrace Sustainability

Brazilian companies have embraced the concept of sustainability according to a new report from Deloitte Touche Tohmatsu.

"The Sustainability Chain: A Survey of Views and Practices of Brazilian Companies That Influence the Future of the Planet" reports that:

• "Sustainability has taken its place on the agenda of companies doing business in Brazil and is already perceived as an essential factor in relations with various stakeholders;
• "Concern for the theme permeates all stage of the production chain;
• "The current economic scenario has not affected the investment decisions of the majority of companies in relations to actions involving sustainability."

With Brazil posed for dramatic economic growth, local trends there will become even more visible throughout the world.