Brazilian state-owned petroleum firm PETROBRAS announced Friday here the signing of four agreements with Japan, three on financing and one on fuel alcohol exporting.

The first one establishes a strategic partnership between the Brazilian petroleum firm and the Japanese Bank for International Cooperation (JBIC), which consolidates old ties between the two institutions.

Another agreement is about the obtainment of a 900-million-US- dollar loan for the modernization of the Henrique Lage Refining Plant, in Sao Paulo state. The funds will be provided by the JBIC, the Nippont Export and Investment (Nexi), Sumitomo Bank, Itochu Corporation and Mitsui.

Nexi and Sumimoto-Mitsui Bank signed as well with Brazil a memorandum of understanding for a 300-million-dollar loan that will be channeled to cover an investment program considered by the Brazilian company as part of its Strategic Plan 2004-2010.

Under the fourth agreement, Brazilian firm Vale do Rio Doce and Japanese Mitsui Corp will form a working group to jointly study the reduction of logistics costs in the Brazilian exports of fuel alcohol, the main alternative to fossil fuel at present, for which Japan could become a very important market.

Source: Xinhua