Brazil welcomes investment from China so long as rules are followed

7 July 2010

Shanghai, China, 7 July – Brazil welcomes any kind of investment from China as long as the country’s current legal guidelines are followed, said the Brazilian Energy Minister, Márcio Zimmerman, in Shanghai cited by the Bloomberg news agency.

Chinese companies have lately been increasing their investments in the oil, mining and steel making industries in Brazil in order to meet growing domestic demand for raw materials.

The Sinochem group in May agreed to pay US$10 billion for 40 percent of the Peregrino oil field and, in exchange for oil China agreed to loan US$10 billion to state oil company Petrobras, which needs funding to explore oil reserves in the so-called pre-salt layer.

On Tuesday Zimmerman said that Brazil had already received between US$6 and US47 billion of the loan in exchange for oil, of the US$10 billion agreed in 2009.

The Energy Minister said that the Brazilian government was waiting for the final report from British Petroleum on the oil spill in the Gulf of Mexico or decide if it will increase regulations to be applied to foreign companies in terms of prospecting and drilling for oil. (macauhub)