Brazil says to invest some oil money abroad

BRASILIA, Aug 20 (Reuters) - Brazil's Finance Minister said on Wednesday the government intends to invest part of the income from newly found sub-salt oil reserves abroad to prevent inflation and the currency from appreciating.

Oil giant Petrobras (PETR4.SA: Quote, Profile, Research, Stock Buzz)(PBR.N: Quote, Profile, Research, Stock Buzz) shook the oil world last November when it discovered a deposit with estimated reserves of 5-8 billion barrels. Other reserves thought to exist in the area could vault Brazil from 17th to 10th among world oil producers.

"Brazil will do as other countries have done, and won't place all the dollars it receives (from the sub-salt reserves) in the country," Guido Mantega told reporters at an event in Brasilia.

The government plans to take greater control over the new oil discoveries to invest in social welfare and education -- a move which could face obstacles in Congress and from state-run Petrobras.

Mantega said a government commission was still studying the shape a new model for the exploration of the sub-salt reserves should take and that the results would be presented at the end of the year.

"Part of the sub-salt (money) will go to the sovereign wealth fund," he said, adding that the new wealth could also be used for health, education and to reduce the public debt.

A bill creating the sovereign wealth fund financed by Brazil's growing primary budget surplus, which could raise $7 billion this year, is currently in Congress. (Reporting by Isabel Versiani; Writing by Ana Nicolaci da Costa; Editing by Stuart Grudgings and Jonathan Oatis)