A Review of the Nigerian Energy Industry

Petrobras in China ‘leasing deal’

14 October 2015, News Wires – Brazil’s Petrobras has reportedly agreed a leasing deal for a pair of offshore facilities with a Chinese bank that will enable it to raise $2 billion in a move to find alternative financing sources.

petrobrasThe state-owned giant will lease the P-52 platform and P-57 floating production, storage and offloading vessel for 10 years under the contract to be signed with Industrial and Commercial Bank of China Leasing (ICBC), according to a securities filing cited by Reuters.

The units are operating at the Roncador and Jubarte fields, respectively.

Petrobras said it had concluded negotiations with the bank for the financing package that follows a co-operation agreement signed with ICBC during a state visit to Brazil by Chinese Prime Minister Li Keqiang earlier this year.

“This transaction is part of Petrobras’ financial strategy to diversify its funding sources,” it stated.

The heavily indebted company is slashing investment and cutting costs, while also aiming to sell off $15.1 billion worth of assets by the end of next year, to alleviate its financial woes amid an ongoing corruption probe, dubbed Operation Car Wash, involving former top executives and politicians.

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