Brazil is to use money raised from oil to spend on education and poverty, it has been announced.

President Luiz Inacio Lula da Silva claimed that funds from a recent discovery of offshore oil-reserves will be used for "the eradication of poverty" as well as education.

The state-owned company Petrobas discovered the second biggest oil-find in twenty years in 2007 and it is money from this find that the Brazilians are to use.

Mr Lula da Silva commented that the recent discovery will make "Brazil one of the world's largest oil and gas producers".

The president stated that it will give the South American country "timeless and endless wealth" for the people in its use for education and the purging of poverty.

He also explained that the exact reserves were unknown in the field that is off Brazil's southern coast.

While there has been notable economic growth in Brazil under Lula, the country still faces troubling issues with poverty and inequality.

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