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Brazil in talks with China on oil refineries
March 1, 2013, 1:39 pm

A Brazilian owned oil rig. [AP]

An oil rig of Brazil’s government-run Petrobras [AP]

In a boost to joint cooperation between the two BRICS nations, the Brazilian energy minister has announced that Brazil is seeking Chinese help to finish work on two oil refineries.

“Petrobras chief executive Graca Foster is in China to negotiate with Sinopec to finance refineries and also to form a partnership to explore pre-salt oil and take part in oil auctions,” said Edison Lobao, Brazil’s energy minister.

The state-controlled crude producers are also discussing partnerships for oil block auctions this year in Brazil, Lobao told reporters in Brasilia today.

Brazil’s government advised Maria das Gracas Foster, chief executive officer of state run oil giant Petrobras to seek partnerships in China, where she is now, said Lobao.

“I recommended that Petrobras’ president go to China to negotiate with a large state-run Chinese firm,” said the energy minister.

Petrobras has set aside $24.9 billion to expand refinery capacity.

The auction of non-conventional gas blocks originally slated for December will be held in October, Lobao said.

Petrobras will also rely on China to build parts of four platforms that will be placed in the off-shore Santos Basin, the company said in a statement on Monday.

Petrobras produces around 90 per cent of Brazil’s oil and China is the country’s largest trading partner.

China Petroleum & Chemical Corporation, or Sinopec Ltd, is a Beijing-based oil and gas company which is listed in Hong Kong, Shanghai and New York (NYSE: SNP).

It is one of the world’s biggest companies by revenue and Sinopec Ltd’s parent, Sinopec Group is one of China’s biggest petroleum groups.

TBP with Agencies