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

Gazpromneft stunned the market this week when it was revealed pricing for their five-year $1 billion pre-export financing was rumoured to be just above 300 basis points over Libor. Is the deal likely to be a syndication success?

Yes - this seems like a sensible pricing benchmark, why not?

No - are you crazy? These prices are ridiculous. What were these banks thinking?

27%

Yes - but for all the wrong reasons. A lack of other deals in the market, and the promise of future business with Gazpromneft will make it hard to ignore but don’t expect many to take up big tickets with this deal. There are much better deals out there.

64%