Rio expo gives China a showcase for its oil industry

Updated: 2014-09-22 03:59

By JI YE in Rio de Janeiro(China Daily Latin America)

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Rio expo gives China a showcase for its oil industry

Brazil-based Petrotech, a subsidiary of China's state-owned China National Petroleum Corporation's Technology Development Company, took part in this year's exhibition. Liu Long / Xinhua

Deng's comments were echoed by Raul Sanson, a Brazilian entrepreneur who has been dealing with Chinese companies for six years. He said since he first imported Chinese oil-equipment parts in 2008, he has been very satisfied with their performance.

"For instance, the submersible pump-engine technology from China meets the standards of any countries' market," he said.

The pump equipment Sanson imported from China is undergoing an 18-month mandatory test by Brazil's oil giant Petrobras. He said that if it passes, the pump equipment will be given permission to enter the Brazilian market.

The pump equipment has been running smoothly over the past 12 months, and is expected to finish the test in January next year.

Crude oil production in the state of Rio de Janeiro accounts for 72 percent of Brazil's national output, while natural gas reserves take up about 36 percent of the total.

Chinese oil companies are pushing to meet mandatory expansion targets by signing deals across Latin America, and they are especially interested in Brazil.

Last October, two Chinese firms, China National Offshore Oil Corporation (CNOOC) and CNPC joined counterparts Royal Dutch Shell, France's Total and Petrobras to put in the winning bid at the auction of Brazil's offshore Libra oilfield.

The Libra oilfield, which is not far off the coast of Rio de Janeiro state, is estimated to hold 8 to 12 billion barrels of oil, which would practically double Brazil's proven oil reserves.

CNOOC and CNPC each hold a 10-percent stake, with Shell and Total having 20 percent each and Petrobras the remaining 40 percent.

The deal is part of a growing oil relationship between the two countries that, thanks to a series of billion-dollar agreements, is giving China greater influence over Brazil's oil frontier.

Alexandre dos Reis, president of the Industrial Federation of the Rio de Janeiro State, said: "I'm 100 percent supportive of the Chinese companies' participation in the bidding for oil projects in Brazil. If we only relied on Brazil's economic and technological strength, it would be unable to complete such a big project as the Libra oilfield. The future of oil industry cooperation between Brazil and China has a bright prospect."

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