Chinese investment boosts Brazil’s pre-salt prospects

By Chris Noon 11 July 2017
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A deepwater drilling rig in Brazil. (Anadarko) A deepwater drilling rig in Brazil. (Anadarko)

Energy-hungry China has pinned its upstream hopes on Brazil’s pre-salt fields, with China National Petroleum Corp. (CNPC) signing a strategic partnership with Petrobras last week. Closer Sino-Brazilian ties will supply more cash for lucrative deepwater exploration and may provide a boost to long-delayed downstream projects, experts say.

"The strategic partnership, if it materialises, would likely focus on pre-salt development in Brazil and on Petrobras’s overseas interests," Margaret Myers, director of the China and Latin America programme at the Inter-American Dialogue, told Interfax Natural Gas Daily.

Petrobras said the agreement would allow for "sharing risks, increasing investment capacity in the oil and gas supply chain, technological exchanges, and strengthening corporate governance". CNPC is one of the few companies with an interest in Brazil’s pre-salt sector, partnering with Petrobras in the Libra field.

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