Brazil’s Petrobras gets loan from Chinese bank

5 November 2009

Rio de Janeiro, Brazil, 5 Nov – Petrobras has signed a contract for a US$ 10 billion loan from China Development Bank Corporation, the Brazilian state-owned energy firm said Wednesday.

China offered a loan at the end of last year for Petrobras to develop major hydrocarbon reserves off Brazil’s southeast coast.

“This financing has becomes symbolic because of the amount involved and because it represents a new stage for relations between developing countries’ markets,” a Petrobras statement said.

In return for the credit Petrobras will ship oil to China, mainly heavy crude, whose local refineries have problems processing it as they are geared up for light crude. Petrobras, under its loan accord, will export oil to Unipec Asia, a unit of Sinopec. Some 150,000 barrels of oil daily will be shipped in the first year and 200,000 in the nine following years. (macauhub)