Petrobras, China sign oil export contract

July 25, 2005
State-owned Petroleo Brasileiro SA (Petrobras) has signed a contract to sell 12 million bbl of oil to China's Sinochem International Oil Co. Estimated value of the deal is $600 million.

Peter Howard Wertheim
OGJ correspondent

RIO DE JANEIRO, July 25 -- State-owned Petroleo Brasileiro SA (Petrobras) has signed a contract to sell 12 million bbl of oil to China's Sinochem International Oil Co. Estimated value of the deal is $600 million.

Petrobras called it the first Brazilian contract for exporting oil to China, which earlier had bought Brazilian oil only on the spot market.

Petrobras will supply heavy crude from offshore Marlim field.

Brazil, which produces 1.7 million b/d of crude, is a net oil importer but has a surplus of Campos basin heavy crude for export.