Brazilian state-run energy giant Petroleo Brasileiro (PBR, PETR4.BR), or Petrobras, is in talks with China Development Bank for a $10 billion loan, the O Estado de S. Paulo newspaper reported Sunday.
Brazilian state-run energy giant Petroleo Brasileiro (PBR, PETR4.BR), or Petrobras, is in talks with China Development Bank for a $10 billion loan, the O Estado de S. Paulo newspaper reported Sunday.

Citing sources with knowledge of the talks, the loan would be announced during Chinese President Hu Jintao's visit in April if the two sides reach an accord.

Petrobras officials were not immediately available to comment on the report.

If completed, the financing package would be the second between Petrobras and China Development Bank. The funds would also help the oil company overcome any delays in the government's capitalization plan, which is under debate in Congress.

Petrobras plans to invest 88.5 billion Brazilian reals ($48.4 billion) in 2010 and between $200 billion and $220 billion between 2010 and 2014. The company is relying on the capitalization plan, which will include a share offer that could raise as much as $75 billion, as a key part of funding for its ambitious investments.

Company officials said last week that investments could be scaled back if the capitalization plan doesn't move forward before the end of the first half of 2010 - and Petrobras will not risk losing its investment-grade credit rating by adding to its debt load.

In May 2009, Petrobras received a $10 billion credit line from the bank. The company has drawn $5 billion of the credit line. Of the $5 billion remaining, $3 billion must be used to buy machinery and equipment produced in China .

Petrobras also agreed to a 10-year oil supply agreement with China Petroleum and Chemical Corp. (SNP, 0386.HK, 600028.SH), or Sinopec. Sinopec's Unipec Asia unit received 150,000 barrels of crude a day in the first year, which will rise to 200,000 barrels a day over the following nine years.

A new financing agreement will also likely include a similar supply agreement, the newspaper reported.

Διαβάστε ακόμα