CDB provides $1.5 bln credit line for PDVSA to purchase 40% share of Abreu e Lima oil refinery from Petrobras (Linked to Record ID#38053 and #38056)

CDB provides $1.5 bln credit line for PDVSA to purchase 40% share of Abreu e Lima oil refinery from Petrobras In November 2011, Venezuelan state-owned oil company PDVSA entered into a $1.5 billion USD credit line facility to purchase a 40 percent stake of the Abreu e Lima refinery near Recife, Brazil.

The refinery is already under construction by Brazil's state-controlled oil company Petrobras.

In order to accelerate the oil production in Venezuela, China Development Bank has agreed to provide $4 billion in loans to PDVSA (Record ID#38053). This new loan would have a maturity date of 8-years at a rate of LIBOR + 5 percent.

Additionally, two smaller credit lines of $1.5 billion and $500 million (Record ID#38056) were provided for refinery operations and the purchase of oilfield equipment, respectively. It was later reported in 2013 that PDVSA has decided to pull out of the deal with Petrobras.

Petrobras announced in September 2013 that it will abandon its partnership with PDVSA and continued this program with its own investment. It is reported that Petrobras had given up collecting debt owed to it from PDVSA in 2014.