Petrobras negotiates oil partnership with Petrochina

23 May 2007

Beijing, China, 23 May – Brazilian oil company Petrobras is negotiating a “strategic cooperation” partnership in oil refining and exploration, with China’s largest oil company, Petrochina, officials said in Beijing.

The Brazilian state company may sign, at the end of 2007, an initial agreement with Petrochina, according to Henyo T. Barretto, a Petrobras consultant.

“Petrobras hopes to cooperate with Petrochina in deepwater oil exploration in the South China Sea,” Barretto said during the Global Energy Forum in Beijing.

Petrobras plans to invest some US$52.4 billion between 2006 and 2010, of which US$3.1 billion will be outside Brazil.

According to the February edition of the China Business Review, in February China National Petroleum (CNPC) signed a cooperation agreement with Petrobras in exploration and refining both in China and Brazil.

The magazine said that negotiations were underway between Petrobras, China’s Eximbank and China Petroleum & Chemical Corporation (Sinopec) in roder to obtain funds to build a gas pipeline linking north-eastern and south-eastern Brazil.

Sinopec is China’s second-largest oil company.

Petrobras is also in discussions with CNOOC Ltd, China’s largest offshore oil producer, for possible exploration projects.

The China National Offshore Oil Corp., a subsidiary of CNOOC in Hong Kong, is expected, meanwhile, to put a further 22 exploration areas out to tender to international companies this year. (macauhub)