Archive for the ‘development’ Category

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