Foreign

Brazil's Petrobras keen on cooperation with China: CEO

(Xinhua)
Updated: 2011-02-22 11:04

RIO DE JANEIRO - Brazil's state-controlled oil and gas giant Petrobras is analyzing future cooperation opportunities with Chinese companies, the company's Chief Executive Officer (CEO) Jose Sergio Gabrielli said on Monday.

There are opportunities for cooperation in practically all sectors in which Petrobras operates, and Petrobras already has ongoing agreements with Chinese companies in several fields, Gabrielli said in an interview with Xinhua News Agency.

"Last year, we signed a strategic cooperation agreement with China Petroleum and Chemical Corporation (Sinopec) and China Development Bank (CDB) in the fields of exploration and production, refining, transport, sales, petrochemicals, fertilizers and general services," he said.

"China is one of Petrobras' largest oil buyers," Gabrielli said. "We continue to analyze other future cooperation opportunities with Chinese companies."

Petrobras is seeking international partners because as its production is expected to double in the next 10 years to reach 4 million barrels a day, the company needs to expand its structure, Gabrielli said.

He said Petrobras' strategic planning foresees the order of 169 platforms, 504 support vessels, 53 drills and 48 oil tankers until 2020.

Moreover, the company will need other equipment, such as reactors, generators, turbines, cranes, pumps, compressors, filters, and thousands of kilometers of ducts.

The company is seeking partners from both Brazil and abroad to meet the demand, he said.

"In addition to manufacturers already established in Brazil, for which we work to increase competitiveness and productivity, we are encouraging manufacturers from abroad to settle here, especially in association with local companies, so that we can build as much as possible in Brazil," he said.

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Gabrielli also said "by 2014, Petrobras' several ventures will absorb the investment of $224 billion foreseen in the company's business plan. The amount will most likely increase with the plan's review, which is already undergoing."

According to the CEO, besides its own money, Petrobras also has the credibility to obtain necessary financing for its operations. In September 2010, the company carried out the world's largest share sale, managing to raise some $70 billion.

Founded in 1953 and headquartered in Rio de Janeiro, Petrobras is the largest company in Latin America by market capitalization and revenue.