Sinopec and Petrobras Sign Historic Oil Trading Deal

Strategic Insights -

China Petroleum and Chemical Corporation (Sinopec), the largest refiner in Asia, has signed a landmark agreement with Brazil's state-owned oil and gas giant Petrobras to import large quantities of crude oil. The deal, announced in February 2009, is part of a broader cooperation between the two companies in the fields of oil and finance, with the China Development Bank (CDB) providing significant financial support to Petrobras for its oil exploration, exploitation, and refining operations in Brazil. The agreement marks a significant milestone in the bilateral trade relationship between China and Brazil, with the annual trade volume between Sinopec and Petrobras expected to reach 30 million tons.

Key Takeaways:

  • Sinopec and Petrobras have signed a contract for the import of 3-5 million tons of crude oil from February 2009 to January 2010.
  • The China Development Bank (CDB) will provide loans to Petrobras for oil exploration, exploitation, and refining operations.
  • The loans will be repaid by Petrobras through its income from oil exports to China.
  • CDB will also provide financial support to Petrobras for the import of LNG stations, drilling platforms, and ships.
  • The bilateral trade volume between Sinopec and Petrobras is expected to reach 10-12.5 million tons by the end of 2010.
  • The long-term trading volume between the two companies is projected to reach 30 million tons.
  • This deal marks a significant milestone in the bilateral trade relationship between China and Brazil.
  • Sinopec has agreed to cooperate with Petrobras in the fields of oil and finance as part of the agreement.

Statistics:

  • 3-5 million tons of crude oil to be imported by Sinopec from Petrobras in 2009-2010.
  • 10-12.5 million tons of Oil to be traded between Sinopec and Petrobras by the end of 2010.
  • 30 million tons of Oil to be traded between Sinopec and Petrobras in the long term.
  • US$ [no specific amount mentioned]

Sources:

  • "Beijing, Feb 20, 2009 (Xinhua via COMTEX) -- China Petroleum and Chemical Corporation (Sinopec), Asia's largest refiner by output, announced Friday it has signed a contract with Brazil's state-owned oil and gas giant Petrobras."
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  • "As of Monday, 02-16-2009 23:59, the latest Comtex SmarTrend[R] Alert, an automated pattern recognition system, indicated an UPTREND on 11-26-2008 for SNP @ $64.18."