Related News

Home » Business » Energy

Brazil accepts oil-for-loan deal

BRAZIL has agreed to supply up to 100 million barrels of crude oil a day to China in a deal that involves a loan of as much as US$10 billion.

The agreement was announced on Thursday after President Luiz Inacio Lula da Silva met with Chinese Vice President Xi Jinping.

A memorandum of understanding said that Brazil's state-run energy company Petrobras will supply the crude, which will be refined by two Chinese state-owned enterprises, China Petroleum and Chemical Corp and the China National Petroleum Corp.

Brazilian media reported that Petrobras Brasileiro SA will use the Chinese loan to develop deep-water oil reserves recently discovered off the South American's country's coast.

But Petrobras Chief Executive Jose Sergio Gabrielli said the money could be used for other purposes.

The Brazlian deal follows a similar energy agreement signed on Tuesday between China and Russia.

China agreed to provide US$25 billion in loans in exchange for a Russian guarantee to supply 300,000 barrels a day for 20 years.

Strategic ties

Brazil was the first developing nation to establish a strategic partnership with China, Xi noted during talks with Brazilian Foreign Minister Celso Amorim.

Relations between China and Brazil have shown good momentum in recent years, Xi said, adding that the two countries are now key trading partners.

Xi proposed that the two nations expand their cooperation in trade, science and technology, intensify cultural exchanges and step up cooperation in "multilateral spheres."

China is ready to enhance coordination with Brazil in the effort to tackle the global financial crisis and push for reforms in the international financial system, Xi said.

Noting that bilateral cooperation has been fruitful in recent years, Amorim called for greater cooperation to advance the strategic partnership.

Xi arrived in Brazil on Wednesday for an official visit. Brazil is the fifth leg of Xi's six-nation tour, which has already taken him to Mexico, Jamaica, Colombia and Venezuela. He will also visit Malta.

On Thursday, Xi met with the leaders of both houses of Brazil's parliament and discussed ways to advance cooperation between the legislative bodies of the two countries.

During the meetings, Xi praised the close exchanges and friendly cooperation between the legislatures and expressed the hope that they will maintain close contact, strengthen dialogue and enhance coordination within the framework of international and regional parliamentary organizations.


Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend