China: Petrobras may guarantee strategic oil supply to Beijing

18 May 2009

Sao Paulo, Brazil, 18 May – Brazilian state oil company Petrobras may guarantee a strategic supply of oil to China following a rise in Brazilian oil production due to the launch of exploration of vast oil reserves, said the company’s chief financial officer (CFO).

Almir Barbassa said that negotiations were “underway” and would be one of the subjects discussed during a visit to China by Brazilian President Luiz Inácio Lula da Silva, from Monday to Wednesday.

“I cannot reveal (details), but we will be large exporters of oil, as the Chiense are large importers, China will have the comfort of having Brazil as a supplier,” he noted.

Negotiations for a “strategic oil supply” to the Chinese, meanwhile, has yet to be outlined, Brabassa said, during the presentation of Petrobras’ quarterly results.

Brazilian reserves could reach up to 80 billion barrels of oil and gas, according to estimates from the National Oil Agency (ANP), the Brazilian oil sector regulator.

If that production potential is confirmed, Brazil will have the sixth-largest reserves in the world, behind Saudi Arabia, Iran, Iraq, Kuwait and the United Arab Emirates. (macauhub)