Petrobras-China: No Oil for Loans

Petrobras-China: No Oil for Loans

Asia

by John Rumsey A proposed, up to $10 billion loan-for-oil contract between China and Petrobras marks a departure for the Brazilian firm, which does not usually enter into deals committing future production. The agreement shows how urgently the firm wants to keep financing on track for its pre-salt exploration, which Petrobras president Sérgio Gabrielli has said will amount to $29 billion through 2013, and is the latest in a slew of global deals for the Chinese. However, if markets continue to recuperate, interest in inking a pact may wane. The motivation for the deal is that Petrobras, and Brazil’s politicians, are eager to push ahead with the firm’s five-year business plan

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