By Marcus Leach

UK Export Finance is guaranteeing a $1 billion line of credit Petróleo Brasileiro Sociedade Anônima (Petrobras) to finance UK exports for Petrobras’ investment programme.

The line of credit is to expand Petrobras’ oil exploration and production facilities off the east coast of Brazil. It will be provided through HSBC and other lenders.

Petrobras will nominate export contracts with UK based companies to be financed from the line of credit. Supplies under consideration include rigs and vessels for exploration, remotely operated vehicles, control systems, compressors, global positioning services and hardware.

Prior to reaching its decision to support the line of credit UK Export Finance carried out a review to determine that Petrobras’ environmental and social policies and practices meet international standards. The review took into account reports produced by the US Bureau of Ocean Energy Management Regulation and Enforcement and BP following the Macondo incident in the Gulf of Mexico in 2010.

“UK companies have a strong track record in oil exploration through their work in the North Sea," Minister for Trade, Lord Green, said.

"This line of credit will help these companies boost their exports to Brazil by companies and will take the best of British technology to this important and growing market. I look forward to hearing about successes for companies of all sizes, from right across the UK, as a result of this UK Export Finance facility.”

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