The company said that, under the terms of the 10-year loan from China Development Bank, which has been at the centre of China's resources policy, Brazil would supply China Petrochemical Corp – Sinopec ¬– with150,000brl/d of oil for the first year, rising to 200,000brl/d for nine more years.

Petrobras went on to say that the China deal would not affect international oil companies in Brazil. "Our relationship with all our partners is a long-term one, and we will not give that up," said Petrobras' chief executive, José Sérgio Gabrielli.

He spoke during a three-day trip to China by Brazilian President Luiz Inácio Lula da Silva that is intended to strengthen ties between the two economies. Mr Gabrielli said the loan's interest rate was under 6.5%, and the loan used oil revenue as collateral but would be repaid in cash, not oil.

Although the deal does not include guarantees to buy Chinese products or services, other deals will work on exploring closer co-operation, such as moving Chinese equipment factories to Brazil.

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Mr Gabrielli said concessions for Chinese oil companies to produce oil in Brazil could be discussed in the future, and Petrobras may also look into exploring for oil in China. Currently, the company sells about 60,000brl/d to China. China's National Energy Administration Chairman, Zhang Guobao, said Brazil will offer two oilfield blocks to Sinopec.