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By Samuel R. Avro on Dec 9, 2008 with no responses

China to Invest $10B in Brazil Oil Fields

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Brazil’s top energy officials said that China is seeking to loan Brazil’s state oil company $10 billion to assist in the development of new oilfields off the coast of Rio de Janeiro.

Mines and Energy Minister Edison Lobao told the Folha de S. Paulo newspaper that the United Arab Emirates was also interested in involvement, but he did not specify a price tag.

The Brazilian government was first contacted by the Chinese and then forwarded the talks to the government controlled Petroleo Brasileiro S.A. (Petrobras).

Petrobras, in an e-mailed statement to The Associated Press, didn’t confirm a China deal, but said the company has historically searched for “varied sources of financing” and that recent deals will be included in its new investment plan, expected in the coming weeks.

The Brasilian company says that it has discovered upwards of 50 billion barrels of oil reserves in the past year and is going to spend hundreds of billions of dollars to extract the crude over the next thirty years.

The company announced profits of $13 billion in 2007.