Chinese companies negotiate entry into oil block in Brazil

19 August 2010

Beijing, China, 19 Aug – Two oil companies from China are separately negotiating with Brazil’s OGX Petróleo e Gás Participações to acquire a 20 percent stake in an oil block in the Campos basin, the 21st Century Business Herald reported in Beijing.

The paper said that the companies involved were China Petrochemical (Sinopec) and China National Offshore Oil Corp (CNOOC) but noted that no deal had so far been reached and was unable to get a comment on the deal from either of the companies.

Brazil is currently one of China’s main investment targets with deals so far this year worth US$4.3 billion in the raw materials sector, which was far more than the US$362 million total for 2009.

In May, the Sinochem group acquired a 40 percent stake in an oil field from Norway’s Statoil for US$3.07 billion, showing that exploration in deep waters continued to be a high value business, even after the British Petroleum (BP) oil spill in the Gulf of Mexico.

The deal was followed by a preliminary agreement in March for the acquisition, by the East China Mineral Exploration and Development Bureau (ECE), of mining company Itaminas Comércio de Minérios SA, for around US$1.2 million. (macauhub)