Brazil: China offers loan to Brazilian oil company Petrobras

9 December 2008

Sao Paulo, Brazil, 9 Dec – China has offered Brazil a loan of US$10 billion for Brazilian oil company Petrobras to invest in exploration of the “pre-salt” layer, said Brazilian Mining and Energy Minister, Edison Lobão, in an interview published Monday in newspaper Folha de São Paulo.

The minister also said that the Chinese reserved the right to demand a share in oil production in return for the loan.

Edison Lobão said that Petrobras could even receive part of Brazil’s international reserves if it required resources to ensure that its investment programme could go ahead.

Last week, Petrobras exploration and production director, Guilherme Estrella said that, despite the international financial crisis, the company would not reduce its investments or exclude projects from its new business plan for 2009-2013, which is due to be announced on 19 Dec.

The director noted that the “pre-salt” layer projects would be added to the company’s current plans, which for the 2008-2012 period includes investments totalling US$112.4 billion. (macauhub)