Petrobras, will supply China with a total of about 100,000-160,000 barrels of oil a day. In return, China will supply $10 billion in loans to help Petrobras and its private-sector partners develop the pre-salt” fields" discovered last year, which Brazil estimates it will need $174.4 billion of investments between 2009-2013 to develop.
The agreement breaks down as follows. 60,000 and 100,000 barrels a day will go to Unipec Asia, a subsidiary of China Petroleum and Chemical Corporation (Sinopec). 40,000 and 60,000 barrels a day will go to PetroChina.
The loan is guaranteed in the form of a memorandum of understanding with the China Development Bank and Sinopec to provide up to $10bn in finance to Petrobras.
The agreement also covers potential joint development of oil industry projects and supply of goods and services to Petrobras by Chinese companies.
To read more about this topic check out this FT article
If you're interested here's how these companies have been doing in their respective stock markets over the past year.
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