Obama, Petrobras and China’s Sinopec Oil.

Posted on April 5, 2011 by


What do you get when you add Obama with $2 Billion in looted tax payer funds, (borrowed from China) with one Marxist state run oil company named Petrobras?  A subsidy that delivers 200,000 barrels of Brazilian crude a day for 10 years to the refineries in China, guaranteed!  Just spreading the wealth a few billion dollars at a time.

President Obama in a speech down in Brazil on March 19th told local businessmen in the nation state that the US is looking forward to being their best customer in buying oil from their offshore drilling.  This policy to purchase more foreign oil comes after we invested over $2 Billion with Brazil’s state-owned oil company, Petrobras, to finance exploration of the huge offshore discovery in Brazil’s Tupi oil field in the Santos Basin near Rio de Janeiro. Source : http://www.examiner.com/finance-examiner-in-national/obama-to-brazil-we-will-buy-your-oil-after-giving-you-2-billion-to-drill-it

But just before all this happened China’s Sinopec & Petrobras Reached Cooperation Agreement in Brazil that would supply China with a guaranteed 200,000 barrels of crude oil a day for the next 9 years.

China’s Sinopec will acquire part of Petrobras’s stake in two blocks in Brazil, a further step

to enhance relations in the energy sector between China and Brazil.

Brazil’s state oil company Petrobras announced Thursday it has signed a package of agreements with Chinese oil company Sinopec, including a crude oil purchase deal.


There are also possibilities for the two sides to work together on Rio de Janeiro project which was controlled by Petrobras, and new oil supply contract as well.

According to a previous oil pact the two companies signed last year, Petrobras is to supply crude oil to Sinopec for 10 year, with 150,000 barrels of crude a day for the first year and 200,000 barrels a day over the next nine years. Source  :http://english.caijing.com.cn/2010-04-16/110418072.html

So it would appear that Obama while crippling oil drilling and exploration here in America is at the same time subsidizing the 9th largest foreign corporation in the Americas ability to drill for oil in order to satisfy a contract with Sinopec oil.  Both the Sinopec and Petrobras are State owned Marxist or Communist corporations.  But it gets better.  In December of 2010?  Hey that is just 3 months before Obama’s Brazil trip.

BEIJING, Dec. 23, 2010 (Xinhua News Agency) — China’s National Development and Reform Commission (NDRC) said in a statement on its website that it has approved Sinopec (NYSE:SNP) Group’s acquisition of 20 percent stake in two oil blocks owned by Petroleo Brasileiro (NYSE:PBR) (Petrobras).

So now we are almost to the presidents trip to Brazil, 2 days to go.  Petrobras has the knowledge of the $2 bln gift that is coming from Obama’s stash.  So with that nice little gift from Obama they may pursue Portugal’s Galp Energia interest in the alreadyexplored Tupi basin, said to contain the largest oil deposits in the area.

Portugal’s Galp Energia is inching closer to a sale of a stake in its Brazilian assets in order to raise funds. Galp’s objective is to raise around EUR2bn (US$2.8bn), the company’s CFO, Claudio de Marco, said during a presentation to analysts in Rio de Janeiro on March 14 2011, stating that Galp’s preference was to do this by selling a stake in its Brazilian subsidiary Petrogal Brasil .

Petrogal has interests in 36 Brazilian blocks in seven basins, of which the most valuable are those in offshore subsalt plays in the Santos (four blocks) and Espírito Santo (one block) basins. Of particular note is Galp’s 10% stake in Santos’ BM-S-11 block – the site of Petrobras ‘ flagship 5-8bn bbl Lula oil field (formerly called Tupi).  Source : http://www.oilandgasinsight.com/file/97170/galp-talks-up-brazilian-sale-as-cash-concerns-take-centre-stage.html

It seems that that deal fell through for Petrobras as the price for Galp went from $2.8 billion to $5.6 billion.  Looks like we will just have to settle for regular old Subsidy of China’s Sinopec deal for the 200,000 barrels of oil a day.  Thanks Obama!