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 Brazil's Ministry of Mines and Energy informed that the China government has offered a loan in the amount of about US$ 10 billion to state-controlled oil multinational Petrobras for future oil exploration in the pre-salt layer offshore Brazil.
The ministry also reiterated information given earlier by minister Edison Lobão that the United Arab Emirates had contacted the Brazilian government and had also offered the Brazilian oil company money to be invested in pre-salt exploration.
Lobao said other offers of funding for oil field development have come from companies in Japan and Canada. Petrobras is due to announce a new oil field investment plan later this month.
As a way to insure that the exploration of the believed to be giant oil reserves isn't threatened by the lack of money due to the international financial crisis, the Ministry of Minas and Energy let it be known that the government, if needed, may use part of the US$ 200 billion Brazil has in reserves.
Brazil has discovered what it said are massive offshore oil reserves beneath the sea floor and under the Earth's pre-salt layer. Drilling for oil at such depths will require expensive technology.
The Brazilian energy minister said developing the oil fields will be profitable only if crude prices stay above US$ 30 a barrel. Brazil estimates these oil reserves contain up to 14 billion barrels of crude.
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It will be interesting to see the China reaction and mood !!!!