PETROBRAS became the latest oil group to benefit from

last year’s surge in oil prices when the Brazilian company reported

that net profits in 2000 had more than quadrupled to R$ 9.94 bn

(US$ 4.97 bn) — the highest figure ever recorded by a Brazilian

company.

The rise in net profits was the result of increases in

production and the company’s efforts to scale up bureaucracy.

Under the leadership of Henri Philippe Reichstul, who took

over as president in 1999, PETROBRAS has embarked on a

US$ 33 bn investment plan over five years to virtually double oil

and gas production, clean up the company’s financial affairs and

expand abroad.

In August last year, PETROBRAS boosted its profile in the

international investment community with a successful US$ 4 bn

share offering, the largest made by a Brazilian company.

However, the group’s efforts to modernize its image suffered

a setback in December when the government forced it to abandon

a plan to change its name to “PETROBRAX” which was designed

to reflect its increasing international presence.

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