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.

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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.

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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.