China-Brazil Agreement Drawing Near

Brazil's state-owned oil giant Petrobras has begun talks with China's State-owned oil major Sinopec Group on a wide-ranging cooperation deal. An agreement is expected to be signed when Brazilian President Luiz Inacio Lula da Silva visits China in May, Petrobras said.

Petrobras said the two companies aim to study business opportunities in and jointly develop oil and gas exploration and production, sales, refining and petrochemicals. "Petrobras and Sinopec recognise that an association between the two companies will further progress and viability of various projects of common interest... which can be beneficial to both countries and shareholders," the company said.