- Region: Latin America and the Caribbean
- Untied Loans
October 12, 2012
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed on October 12, a loan agreement amounting up to 1 billion U.S. dollars (of which JBIC's portion is 600 million U.S. dollars) with Petróleo Brasileiro S.A. (PETROBRAS), the state-owned oil company of the Federative Republic of Brazil. The loan is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU, lead arranger), with JBIC providing a partial guarantee for the cofinanced portion.
- This long term loan will be used to finance two PETROBRAS projects in Rio de Janeiro, Brazil, that will help to reduce the greenhouse gas (GHG) emissions, under GREEN*1 operations. One is for a co-generation project at Comperj oil refinery, and another is for a flaring gas*2 reduction project at multiple offshore oil concessions in the Campos Basin. This is the largest loan, as well as the first loan targeting specific projects under GREEN operations. According to JBIC estimations, GHG emission reductions are expected to reach 0.3 million tons of CO2 per year from the co-generation project and 2.41 million tons of CO2 per year from the flaring gas reduction project.
- The government of Brazil, as one of the signatories of the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol, is undertaking environmental measures targeting the reduction of GHG emission by 36-39% (compared to business-as-usual) by the year 2020. Also, PETROBRAS has its own medium term plans to improve energy efficiency and GHG emission reduction, and the loan is expected to help the efforts of the government of Brazil and PETROBRAS.
- PETROBRAS is a Brazilian national oil company that holds the majority of the country's oil and gas reserves. It plans to invest approximately 236.5 billion U.S. dollars until 2016 into various projects, including development of a large scale ultra deep-water oil field on the continental shelves off the coast of Brazil called Pre-salt. JBIC and PETROBRAS have built close cooperative ties over many years and this loan is expected to further strengthen the relationship between the two institutions.
- JBIC will continue to support global environmental preservation efforts, while paying attention to the strengthening of the collaborative relationships with foreign governmental institutions which are strategically important for Japanese overseas business deployment and/or for securing stable supplies of energy resources to Japan.
- *1 See Information on April 27, 2010.
- *2 This project aims to reduce GHG emissions by diverting flaring gas, which was being wasted previously, to increase the supply for domestic consumption in Brazil, upon the stabilization and capacity expansions of compressors etc.