Brazil signed an agreement to supply China with 100,000 to 160,000 barrels of oil per day at market prices in exchange for a loan from the China Development Bank to help develop its huge oil reserves.

President Luiz Inacio Lula da Silva (L) met Vice President Xi Jinping in Brasilia.

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The agreement signed Thursday and which will take effect immediately, was announced at Brazil's foreign ministry after President Luiz Inacio Lula da Silva met with Vice President Xi Jinping in the capital city of Brasilia.



Brazil's government managed oil and gas corporation Petrobras signed a memorandum of understanding to secure long-term financing from the Chinese Development Bank and hopes to begin receiving funds as early as May. The funds are to help extract massive, newly found oil reserves deep beneath the ocean floor off Brazil's southern coast.



"We'll settle it by the time the president Lula da Silva visits China in May" Petrobras CEO Jose Sergio Gabrielli told reporters after meeting with Chinese officials.



The understanding confirms the interest of both countries: Brazil needs funds to develop the new fields and China is determined to ensure long term supplies of natural resources such as oil, minerals and agriculture commodities. This is the purpose of Vice-president Xi Latinamerican tour which so far has included Mexico, Colombia, Venezuela and now Brazil.



Brazilian Foreign Minister Celso Amorim hailed the deals as proof of growing cooperation between two large emerging markets. "This is the most important South-South relationship" he underlined.



On Tuesday, China Development Bank signed a 25 billion US dollars financial deal with Russia's state oil champion Rosneft and pipeline monopoly Transneft in exchange for oil from the huge new East Siberian fields for the next two decades.



Petrobras is to supply the oil to Chinas government owned Sinopec. Brazil has discovered high grade light oil and natural gas deposits in the Santos Basin, and further south which is estimated to hold 60 billion barrels of oil.



CEO Gabrielli recently announced a five-year investment developing plan totalling 175 billion US dollars.



Brazil has been talking with China about the loan since last year. The company has been seeking alternatives to international bank lending and bonds to finance its spending plan in the face of an international credit crunch.(Foto Abr)



http://www.mercopress.com/vernoticia.do?id=16160&formato=HTML>

heard brazil found some large oil field too not so long ago

good news for oil market

China now is using forex wisely. In recent days, We spent:

US$19.2 billion in metal resources in Aus

US$1.7 billion in metal resources in Aus

US$ 25billion in Russian oil and

US$10 billion in Brazil oil



I bet a lot more will come out. Forget about Canada oil sand now. HAHAHA.



Don't forget China and Saudi is in agreement in builing 100 million tons of oil stragety reserves.



I always laugh when I recall US blocked a oil deal last year in which Chinese company tried to buy a oil company and canada blocked a deal in which China tried to buy some oil sand reserve there. Now we can buy resources at much lower price.



China should also move a lot of resources to China'a land from outside. That for our future. We sould store:

1. 1 billion tons of iron ore, cost US$80 billion

2. 300 million tons of oil, cost US$ 70 billion

3. 10 million tons of purified copper, costUS$ 40 billion

..........



All these are what we can afford in cash and we can pay for our future safety.

300 million tons of oil, cost US$ 70 billion
==

We are already doing it, by not digging out our own oil fields

China has also a huge oil resource but we can better leave it for future

NALYSIS-Growing China to stay hungry for Brazil's resources
02.20.09, 10:22 AM EST
BRAZIL-CHINA/TRADE (ANALYSIS):ANALYSIS-Growing China to stay hungry for Brazil's resources


By Peter Murphy

SAO PAULO, Feb 20 (Reuters) - China will remain a loyal shopper in Brazil through the darkest hours of the global economic downturn though it has already begun to fill its cart for less and a little more lightly as commodity prices slump.


Coinciding strong economic growth in the two nations this decade has brought them together as strategic trade partners.

China's voracious consumption of iron ore and soybeans amid a commodities price spike helped Brazil boom in recent years.

Awash with cash and with a growth target of 8 percent in 2009 while other large economies slide toward recession, China is already getting a better deal on soy after market prices plummeted. It is also geared up to bargain hard for cheaper iron ore, the main ingredient in steel.

"I believe that this year, despite the crisis, we will still see, if not a rise, at least not a great drop in trade volume," said Charles Tang, Chairman of the Brazil-China Chamber of Commerce, which was founded in 1986.

Bilateral trade soared to $36.4 billion in 2008 from $1.54 billion in 1999, according to data compiled by the Chamber of
http://www.forbes.com/feeds/reuters/2009/02/20/2009-02-20T152233Z_01_N20502572_RTRIDST_0_BRAZIL-CHINA-TRADE-ANALYSIS.html

"Bilateral trade soared to $36.4 billion in 2008 from $1.54 billion in 1999"

Wow.

Mexico found a big oil field.

How much oil resource does Brazil have?

Seems that area will boom with oil too soon

They had two major oil field finds in 2007-2008. I don't know how much the first one was but the second oil field has an estimated 33 billion barrels of oil.

33BB, some 5B tons = 1500 billion dollars (price 50usd/b) that's BIG money

50b tons that's good for some 10 years for a country like China

Petrobras, Brazil's national oil company, says it believes the offshore Tupi field has between 5bn and 8bn barrels of recoverable light oil.

Brazil currently has proven oil reserves of 14 billion barrels, over half of which have been discovered in the past five years.

http://news.bbc.co.uk/2/hi/americas/7086264.stm

According to Oil and Gas Journal (OGJ), Brazil had 12.2 billion barrels of proven oil reserves in 2008, second-largest in South America after Venezuela. The offshore Campos and Santos Basins, located on the countrys southeast coast, contain the vast majority of Brazils proven reserves. In 2007, Brazil produced 2.28 million barrels per day (bbl/d) of oil.
http://www.eia.doe.gov/cabs/Brazil/Oil.html

2.28 million barrels per day
=
1000m/year = 1 billion barrels
150m tons = 70 billion dollars/year

OK I know