Petrobras executes $5 billion loan from Chinese bank

Brazilian oil giant Petrobras has executed a facility agreement with the China Development Bank (CDB) in the amount of $5 billion for a 10-year term.

The agreement is the result of the term sheet signed between the parties in February 26, 2016.

Petrobras also signed on Thursday a commercial agreement with each of the following Chinese companies: China National United Oil Corporation, China Zhenhua Oil Co. Ltd., and Chemchina Petrochemical Co. Ltd.

The three agreements together establish a preferred supply of 100 thousand barrels of oil per day in total volume to those companies, following market conditions, for a 10-year period.

Earlier this week, Petrobras produced 1 billion barrels of oil in the pre-salt layer. This total output was achieved just six years after the first production system came on stream in Santos Basin, in Lula field, and 10 years after the first discovery, in 2006.

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