Brazil’s Petrobrás to do more business in China

13 December 2006

Sao Paulo, Brazil, 13 Dec – Brazil’s Petrobras plans to do new business deals in China in 2007, the company’s chairman, Sérgio Gabrielli, said in Sao Paulo.

Quoted by Barzilian financial newspaper, Gazeta Mercantil, Gabrielli said that his company would look more closely at the Chinese market, although he declined to provide further details.

The Chinese government Thursday brought an end to a monopoly by authorizing foreign companies to sell crude oil in the country as of January 1, 2007.

This decision will require PetroChina Co. (Sinopec) and other local producers to compete on an equal footing with foreign companies which, according to the criteria announced by the Chinese Trade Ministry, must have capital of over 100 million yuan, be oil producers or have the capacity to 500,000 tons of oil per year.

According to figures from the International Energy Agency, this year will consume 7.01 million barrels of oil per day, or 6.2 percent in 2005. (macauhub)