Petrobras signs long-term oil deal with China

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20 February 2009

Brazil's state-run oil producer Petrobras has signed a multi-billion dollar credit line with the state-controlled China Development Bank in exchange for future oil supplies.

Brazil's state-run oil producer Petrobras has signed a $10 billion credit line with the state-controlled China Development Bank in exchange for future oil supplies.

The deal is the first of its kind for the Brazilian oil major as it seeks to secure financing for its...

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Poll

Has the bond market improved sufficiently to be more attractive for commodity producers than the pre-export finance market?

Yes- investment grade producers will want to dispense with high maintenance finance structures such as pre-export financings. If they can’t go unsecured they will certainly use the bond market rather go for pre-export financings.

No – bond investors aren’t ready yet for to do these types of credit. This is why we are now seeing a lot of listed metal producers in developed markets mandating for pre-export loans for the first time. The bond market is still much too volatile.

67%

Maybe – the bond market has not been tested this year for large commodity producers. It depends if any of the producers feel brave, or foolish, enough to attempt it and perhaps create a benchmark for others to follow.

33%