AmericasFinance and InsuranceOffshore

Petrobras signs $2bn sale and leaseback deal with China’s ICBC

Brazil’s state oil producer Petrobras announced on Tuesday it has signed a 10-year leasing contract with Industrial and Commercial Bank of China (ICBC) Leasing.

The deal will raise $2 billion for the hugely indebted and scandal-plagued firm, and involves the sale and leaseback for the P-52 and P-57 deepwater platforms. The contract “is part of a financial strategy to diversify financing sources,” the announcement from Petrobras said.

Already creaking under the biggest debt of any oil company in the world, Petrobras has been planning and implementing swingeing budget cuts and trenchant reductions in investment as it tries to cope with the plunging oil price and the ramifications of the bribes-for-contracts scandal that has engulfed it for the past year.

In May three Chinese banks, China Development Bank, China Exim Bank and ICBC signed memorandums of understandings with Petrobras to offer a total of $10bn in financing.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.
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