China Will Finance Brazil's Deep-Sea Oil Extraction

Petrobras offshore platform The Brazilian government signed an agreement to supply China with 100,000 to 160,000 barrels of oil per day at market prices in exchange for a loan from the China Development Bank to help develop its huge oil reserves.

The agreement signed Thursday and which will take effect immediately, was announced at Brazil's foreign ministry after Brazilian President Luiz Inácio Lula da Silva met with Vice President Xi Jinping in the capital city of Brasí­lia.

Brazil's government controlled oil and gas multinational Petrobras signed a memorandum of understanding to secure long-term financing from the Chinese Development Bank and hopes to begin receiving funds as early as May. The funds are to help extract massive, newly found oil reserves deep beneath the ocean floor off Brazil's southern coast.

"We'll settle it by the time president Lula visits China in May," Petrobras CEO José Sérgio Gabrielli told reporters after meeting with Chinese officials.

The understanding confirms the interest of both countries: Brazil needs funds to develop the new fields and China is determined to ensure long term supplies of natural resources such as oil, minerals and agriculture commodities.

This is the purpose of Vice-president Xi Latinamerican tour which so far has included Mexico, Colombia, Venezuela and now Brazil.

Brazilian Foreign Minister Celso Amorim hailed the deals as proof of growing cooperation between two large emerging markets. "This is the most important South-South relationship," he underlined.

On Tuesday, China Development Bank signed a US$ 25 billion financial deal with Russia's state oil champion Rosneft and pipeline monopoly Transneft in exchange for oil from the huge new East Siberian fields for the next two decades.

Petrobras is to supply the oil to China's government owned Sinopec. Brazil has discovered high grade light oil and natural gas deposits in the Santos Basin, and further south which is estimated to hold 60 billion barrels of oil.

CEO Gabrielli recently announced a five-year investment developing plan totaling US$ 175 billion.

Brazil has been talking with China about the loan since last year. The company has been seeking alternatives to international bank lending and bonds to finance its spending plan in the face of an international credit crunch.



0 #20 Rickie DickieCostinha 2009-02-25 10:41
So after all.... Uncle Sam, back in the last row of the bus. If any complains, you are walking the rest of the way!


God Mess America
0 #19 The WhyRic 2009-02-25 07:50
China is sitting on trillions in US$ which given the events of the last month or so will obviously become near worthless. They want to get some of that money into something of value while it still has some buying power.
0 #18 Demeted Double DotterCostinha 2009-02-25 06:19
The perfect (.....0.....)

0 #17 China is reaching it's hand out yet againfalupa 2009-02-24 06:59
China is expanding their funding into yet another country. They know that when they have FDI in other countries they can help manipulate and expand their global projects. I don't know how they can afford it, though. They don't have the financing available to do such a thing. They must be running a very large deficit.
0 #16 get a life!!!brazilian pride 2009-02-21 16:20
you MotherF... need to get a life.... stop bringing your low life coments over here.... go get a room or something....
By the way, another step towards our shining future
0 #15 Ch.c 2009-02-21 15:47
God can't bless Switzerland because his blessings would freeze along the journey ...
Double-Dot, you are a JUNKIE and a GOAT. With the help of our Swiss Technology, the God will defreeze his blessings once he lands in Geneva .

Long live Switzerland. And don't argue with me.
0 #14 SwitzerlandDouble-Dot 2009-02-21 08:44
God can't bless Switzerland because his blessings would freeze along the journey ...

God bless America
0 #13 Ch.c 2009-02-21 05:09
May God keep on blessing America
BUT.....BUT.....some GOATS and JUNKIES in another thread were contesting you!!!!! LAUGH...LAUGH......

May God bless Switzerland also.
0 #12 Double-Dot 2009-02-21 03:44
I'm tired of you faking my ID and I'm tired of Ch.c. with your sexual bullshit here, if you sex with boys or whatever go to a brothel !

For the other Limeys, your mothers must be so disappointed for giving birth to you..

May God keep on blessing America
0 #11 swiss little boych.c. 2009-02-20 17:17
Yes, I will because I love little boys like you...

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