Petrobras entered into a US$10 billion financing deal with China Development Bank (CDB) that includes a trade agreement for the Brazilian giant to supply oil to Chinese companies.
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Image from Petrobras. |
This new contract is a result of the cooperation agreement signed by Petrobras and CBD in 2015, when the Prime Minister of China Li Keqiang visited Brazil that aimed to develop a partnership between the two during 2015 and 2016, Petrobras said.
In addition to the signing of the term sheet last week in Brazil, the drafts of the financing contracts are in the process of being negotiated, and mirror the terms of contracts between the two entities from 2009.
The 2009 contract, which was also for $10 billion, included a deal for Brazil to provide about 200,000 b/d to China’s Sinopec over 10 years.
In October, Petrobras and the Industrial and Commercial Bank of China Leasing(ICBC) inked a 10-year, $2 billion finance lease on two existing platforms, the P-52 and P-57. The deal was part of a cooperation agreement signed in May 2015 to create a long-term relationship between the two companies.
Last month, Petrobras announced its plans to decrease its capex by an additional 25%, or $32 billion in its 2015-2019 business plan. The new forecast shows a bigger decrease from the previously announced $130.3 billion it listed last June. As of January, the company said its new planned capex is $98.4 billion, with $80 billion (or 81%) going toward exploration and production activities.
Petrobras also decided in January, to increase its exploration and production investment from $19 billion to $20 billion in 2016, with an emphasis on pre-salt.
However, just last week, Brazil’s Senate passed a bill that could hinder the Petrobras’s pre-salt domination in the country.
The bill, if completely approved, could strip Petrobras of its role as the sole operator of Brazil’s pre-salt fields.
Read more:
Brazil's Senate passes pre-salt bill
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