Petrobras (Brazilian Petroleum S.A.) announced the signing of a contract to supply 12 million barrels of heavy crude to China.
The oil will be extracted from the Marlin field in the Campos Basin, in the state of Rio de Janeiro, and shipped to the Sinochem International Oil Company, a Chinese government enterprise.
According to the Brazilian State firm, this represents the first contract to export petroleum to China. The estimated value of the deal is US$ 600 million.
The date for the first shipment has not been set yet, but six shipments are expected to be made, on tankers each able to transport up to 2 million barrels.
Through June, through its Beijing office, Petrobras had sold a total of US$ 190 million in petroleum and liquified petroleum gas (LPG) to the Chinese market.
In five years the company plans to export around US$ 1 billion annually, including fuel alcohol sales, to China.