MercoPress. South Atlantic News Agency

China’s Sinopec expected to invest in Brazilian offshore oil blocks

Chinese president Hu Jintao arrived Wednesday in Brazil

China's Sinopec will buy stakes in two Brazilian offshore blocks from state-run Petrobras, local media reported Wednesday, as part of a cooperation agreement to be signed during a visit by China's president to Brazil.

An official for Sinopec Group, China's No. 2 state oil giant, earlier this month said the company would sign a cooperation pact with Petrobras that would likely include a crude oil supply deal.

Estado de Sao Paulo newspaper said Sinopec would take stakes in the BM-PAMA-3 and BM-PAMA-8 blocks in deep waters of the Para-Maranhao basin in northern Brazil, without saying where it got the information.

The newspaper said it was informed by Sinopec that the company would sign two agreements with Petrobras. The paper did not give details on what those agreements would be. Petrobras did not comment.

Chinese President Hu Jintao arrived in Brazil on Wednesday as part of a meeting of the BRIC nations, which include Brazil, Russia, India and China.

Petrobras in 2009 borrowed 10 billion USD from China in a deal linked to a supply agreement. The company has denied rumours that it is in discussions for a similar financing agreement this year.