Petrobras-CNPC refinery talks

Brazil’s state-run oil company Petroleo Brasileiro and China National Petroleum Corp (CNPC) took another step on Wednesday in negotiations that could give the Chinese their first refining capacity in the Americas.

The companies announced in a Brazilian securities filing that they had signed a letter of intent advancing talks for a partnership to finish the Comperj refinery near Rio de Janeiro and “participation” of CNPC in the offshore Marlim oil field.

The joint announcement confirmed an April report by Reuters that said the companies were working out a deal involving a CNPC investment at Comperj in exchange for a stake in the offshore Campos Basin and rights to use the refinery.