China’s Sinopec to import 7 million tons of crude oil from Brazil this year

20 May 2010

Beijing, China, 20 May – Sinopec (China Petroleum & Chemical Corporation) is this year due to buy 7 million tons of crude oil from Brazilian oil company Petrobras, the chairman of the company said in Beijing at a shareholders meeting.

Shu Shulin said that that amount was expected to increase, as it was due to reach 10 million tons in 2011, or the equivalent of 200,000 barrels of oil per day.

In November 2009 Petrobras took out a loan of US$10 billion over 10 years from the China Development Bank, the biggest loan ever provided by a Chinese bank to a Brazilian company or institution.

In exchange for the loan Petrobras committed to giving Chinese companies preference in buying goods and services and to pay off part of the loan with revenues from the sale of oil to China.

Speaking about the company’s activities, Shu said that daily sales of refined oil had reached 390,000 tons in the first four months of the year, a rise of 70,000 tons against the same period of 2009.

In total, Sinopec’s refined oil production is this year expected to total 10 million tons. (macauhub)