Petrobras, Brazil's largest state-owned firm, will launch an exploration for deep sea oil with China Petro-Chemical Corp. (CPCC), according to the chief representative of Petrobras' Beijing office.

The two companies signed a contract last May, stipulating that they would cooperate in petroleum sales, exploration, production, refining, pipes, engineering service

and technologies and other aspects, said Marcelo Castilho da Silva, chief representative of Petrobras' Beijing office, on Tuesday.

According to the agreement, the CPCC would provide funds and Petrobras contribute the technology.

"During the preliminary period of cooperation, our efforts will be focused on exploring and developing the off shore areas of both countries. And in the mid and long term, we will go to explore other oceans worldwide, especially those around the Latin America which may include areas near Africa, Venezuela, Columbia and the Mexico Gulf," he said.

But currently, the two companies' cooperation regarding the China will be mainly in the South China Sea. Work is expected to begin in six months to one year, according to the chief representative. Exploration of water off Brazil is scheduled to begin in January of 2005.

Source: Xinhua