State-owned China Development Bank has agreed to lend Brazilian state-run oil company Petrobras US$5 billion, repayable in 2027, Petrobras says.

The oil company issued a written statement saying China Development Bank will hand over half the money this month and the other half next month, when Petrobras will repay US$2.8 billion it borrowed from the bank in 2009.

Petrobras says the US$2.8 billion is the remainder of a larger sum it borrowed to back up a deal it had with Unipec Asia Co. Ltd, an arm of Chinese oil company Sinopec Group which trades crude oil internationally, to supply up to 200,000 barrels of oil per day over 10 years.

That deal was due to expire in 2019, but will be ended early and replaced by another agreement, which commits Petrobras to supplying Unipec Asia with 100,000 barrels of oil per day over 10 years, Petrobras says.

 

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