Brazil’s Petrobras takes on loan of US$10 billion in China

Brazilian oil company Petrobras

RIO DE JANEIRO [ ABN NEWS + MACAUHUB ] — Brazilian oil company Petrobras has contracted a loan of US$10 billion from the China Development Bank (CDB), to be paid with the delivery of oil to Chinese companies, under a contract signed Friday.

The contract was signed at the headquarters of the Brazilian company, in Rio de Janeiro, by the president of Petrobras, Aldemir Bendine, and the president of the CDB, Zheng Zhijie.

This new contract is the result of a cooperation agreement signed by Petrobras and the CDB in 2015, during a visit to Brazil by the Chinese Prime Minister Li Keqiang, with a view to establishing partnerships between the two institutions in 2015 and 2016.

Petrobras reported that the model adopted for this contract was similar to one adopted in 2009, when the Brazilian government pledged to deliver 150,000 barrels of oil per day to China’s Sinopec in the first year of contract and 200,000 barrels per day for the next nine years, also in exchange for a loan of US$10 billion.

Petrobras did not detail, however, the amount of oil that would be paid in return or the name of the buyer or buyers of the oil.