PETROBRAS has revised its project portfolio for 2011-14, with the result that projected investment has been cut by $10billion, from $148.08billion to $138.8billion.
The Brazilian state operator said its board had approved the projects and investment total, and added that the board had also approved a set of projects that total investments of about $258.17billion for the post-2014 period.
Meantime, according to the Brazilian media, Petrobras is in talks with China Development Bank for a $10billion loan.
Citing sources with knowledge of the talks, the loan would be announced during Chinese President Hu Jintao’s visit in April if the two sides reach an accord.
If completed, the financing package would be the second between Petrobras and China Development Bank. While, clearly, the funds will help Petrobras capitalise its ambitious offshore investment programme, a further loan would make it more difficult to resist approaches by Chinese petroleum companies seeking access to oil&gas resources.
Petrobras is relying on the capitalisation plan to fund the development programme. This could include a share offer that could raise as much as $75billion as a key part of funding needed to cover its debt load.
It was in May 2009 that Petrobras received its first $10billion credit line from the Chinese bank. The company has drawn $5billion of the credit line. Of the $5billion remaining, $3billion must be used to buy machinery and equipment produced in China.
This demonstrates clearly the grip that China is increasingly applying worldwide.