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.

Mercopress

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  • Show Comments (20)

  • Costinha

    Rickie Dickie
    So after all…. Uncle Sam, back in the last row of the bus. If any complains, you are walking the rest of the way!

    Questions?

    God Mess America

  • Ric

    The Why
    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.

  • Costinha

    Demeted Double Dotter
    The perfect (…..0…..)

    Costa

  • falupa

    China is reaching it’s hand out yet again
    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.

  • brazilian pride

    get a life!!!
    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

  • Ch.c

    [quote]God can’t bless Switzerland because his blessings would freeze along the journey … [/quote]

    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.

  • Double-Dot

    Switzerland
    God can’t bless Switzerland because his blessings would freeze along the journey …

    God bless America

  • Ch.c

    [quote]May God keep on blessing America[/quote]

    BUT…..BUT…..some GOATS and JUNKIES in another thread were contesting you!!!!! LAUGH…LAUGH……

    May God bless Switzerland also.

  • Double-Dot

    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

  • ch.c.

    swiss little boy
    Yes, I will because I love little boys like you…

  • swiss little boy

    ch.c.
    And I expect you to whip me hard and harsh….daily.
    I just love it that way.

  • swiss little boy

    Double-Dot
    Well, my boyfriend ch.c. and I can certainly show you around here in Switzerland…

    Im sure you will find plenty of entertainment here or something more serious if you wish

  • Double-Dot

    Can I find a boyfriend there too ?

  • swiss little boy

    Double-Dot
    Im sure you will find many brothels in Switzerland… believe me, there are more than any other country

  • swiss little boy

    Double-Dot
    After so much consideration, I decided to dedicate my heart to my boyfriend ch.c. only… but thanks for the offer Double-Dot…

  • Double-Dot

    [quote]I will do whatever and as many times someone wishes for 1 Brl…a week[/quote]

    Swiss Little Boy, your offer is accepted. If you promise not to bother us for the next 52 weeks, I will be happy to deposit 52 Brl in your bank account in the Caymans. Just give me the name of your bank and the a/c number.

    Any questions?

  • swiss little boy

    I Offer Myself
    The offer is open to anyone who comes to my home in Switzerland…

    I can also include my beloved boyfriend CH.H along, two swiss for the price of one 😉

    Don’t miss out!

  • swiss little boy

    I Offer Myself
    I will do whatever and as many times someone wishes for 1 Brl…a week !
    I know that Brazilians love rotten and rusted piggies like me.

    Times are difficult these days.
    If none of you accept my Discounted offer, I will have no choice but to return in jail where there I could happily get sex for food….but not the 1 Brl per month.

  • swiss little boy

    CH.C.
    My love,

    I want to explore and extract white oil from you 😉

  • Ch.c.

    True
    VERY TRUE

    I use it when I am alone or together with my boyfriend but let’s stick to the topic!

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