Archive for the ‘Brazil’ Category

China Buying Oil, Uranium, Gold, Other Products At Bargain Prices

March 12, 2009

China is forging ahead with an overseas spending splurge, snapping up resources especially oil at bargain prices and strengthening its long-term prospects for growth before Western economies can bounce back.

A series of high-profile energy deals and mining bids in the past month marked an end to the nervousness that appeared to impinge on Communist Party leaders at the outset of the global financial crisis. Attention has turned from hoarding foreign exchange reserves worth close to $2 trillion to locking up future supplies. Oil has emerged at the top of China’s shopping list.

By Chris O’Brien
The Washington Times

In February, China secured oil supply deals totaling $41 billion with Russia, Brazil and Venezuela.

Among the most lucrative: an agreement reached with Russia, in which China will lend $25 billion to Russian oil giant Rosneft and oil pipeline company Transneft. In return, according to Russian news reports, China will receive 300,000 barrels of crude a day for the next 20 years at a rate of about $20 a barrel less than half the current price of $45.

While touring Latin America, Vice President Xi Jinping signed a deal to lend $10 billion to Brazil’s state-owned oil company Petrobras. China will receive up to 160,000 barrels a day, again over a 20-year period.

People sharing a scooter ride past oil rigs in Cangzhou on in northern China's Hebei Province, near Bohai Bay, the innermost gulf of the Yellow Sea on the coast of northeast China, where PetroChina and the China National Offshore Oil Corporation (CNOOC) drill for oil. AFP photo

People sharing a scooter ride past oil rigs in Cangzhou on in northern China’s Hebei Province, near Bohai Bay

A subsequent announcement from China’s National Energy Administration further clarified Beijing’s intentions. China is considering setting up a fund for China’s three state-owned energy giants PetroChina, Sinopec and the China National Offshore Oil Corp. (CNOOC) to purchase oil and gas companies overseas. The firms will benefit from low-interest loans and direct capital injections, the announcement said.

The oil deals complement efforts to buy into the Australian mining industry. China’s biggest aluminum producer, Chinalco, has submitted a bid of $19.5 billion to buy an 18 percent stake in beleaguered mining company Rio Tinto. Chinese firm Minmetals has offered $1.7 billion for Oz Minerals.

China also is seeking diversification of its foreign exchange reserves, now heavily in dollars. The head of China’s energy bureau, Zhang Guobao, said earlier this week that China should accumulate more gold and uranium as well as other strategic commodities.

Read the rest:
http://www.washingtontimes.com/new
s/2009/mar/12/china-stocks-up-on-
bargain-oil/

Related:
Russia, “Desperate For Cash,” Sells Oil to China In “Very Bad Deal”

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Bush Excluded by Latin Summit as China, Russia Loom

December 15, 2008

Latin American and Caribbean leaders gathering in Brazil tomorrow will mark a historic occasion: a region-wide summit that excludes the United States.

Almost two centuries after President James Monroe declared Latin America a U.S. sphere of influence, the region is breaking away. From socialist-leaning Venezuela to market-friendly Brazil, governments are expanding military, economic and diplomatic ties with potential U.S. adversaries such as China, Russia and Iran.

By Joshua Goodman
Bloomberg

James Monroe
Above: James Monroe

“Monroe certainly would be rolling over in his grave,” says Julia Sweig, director of the Latin America program at the Council of Foreign Relations in Washington and author of the 2006 book “Friendly Fire: Losing Friends and Making Enemies in the Anti-American Century.”

The U.S., she says, “is no longer the exclusive go-to power in the region, especially in South America, where U.S. economic ties are much less important.”

Since November, Russian warships have engaged in joint naval exercises with Venezuela, the first in the Caribbean since the Cold War; Chinese President Hu Jintao signed a free-trade agreement with Peru; and Brazil invited Iranian President Mahmoud Ahmadinejad for a state visit.

“While the U.S. remains aloof from a region it no longer sees as relevant to its strategic interests, other countries are making unprecedented….

Related:
Get the Feeling Russia and China Are Slicing Up The World and the U.S. Will Be Left Out?

Read the rest:
http://www.bloomberg.com/apps/news?pid=20
601087&sid=a0a8IQrfwSFU&refer=worldwide

China Likely to Invest $10B in Brazil Oil Field Development

December 8, 2008

China wants to loan Brazil‘s state oil company $10 billion to help develop massive new oil fields in deep water off the coast of Rio de Janeiro, Brazil’s top energy official said in comments published Monday.

Mines and Energy Minister Edison Lobao also told the Folha de S. Paulo newspaper that the United Arab Emirates has offered to finance field development, but he did not specify a price tag.

Lobao said Chinese officials contacted his ministry to propose a loan and Petrobras then negotiated directly with the Chinese. He gave no details on the status of talks, and any deal would have to be approved by his ministry.

Petrobras, in an e-mailed statement to The Associated Press, didn’t confirm a China deal, but said the company has historically searched for “varied sources of financing” and that recent deals will be included in its new investment plan, expected in the coming weeks.

By MARCO SIBAJA, Associated Press Writer

Lobao told the privately run Agencia Estado news agency other countries also wanted to participate: “It’s not just China. It’s a range of opportunities that Petrobras has.”

Lobao said the ministry has talked with a Japanese consortium, Canadian banks and various foreign oil service companies who want to invest in or work on offshore finds. He offered no other details.

Brazil also is ready to tap its foreign reserves to offer a credit line for exploration by Petroleo Brasileiro SA if needed, he added. Lobao’s ministry confirmed the comments, but a spokesman did so only on condition of anonymity in keeping with department policy.

Lobao spoke as many Brazilian companies are being cut off from international credit, which has tightened in the global financial crisis. The minister and other top government officials have repeatedly said the crisis will not effect the exploration of the offshore oil reserves, which could hold up to 80 billion barrels of oil.

Read the rest:
http://news.yahoo.com/s/ap/20081208/ap_on_bi_ge/lt_brazil_china_oil_3