Brazil's state-run oil producer Petrobras has signed a $10 billion credit line with the state-controlled China Development Bank in exchange for future oil supplies.

The deal is the first of its kind for the Brazilian oil major as it seeks to secure financing for its $174.4 billion, five-year investment plan to develop and explore new oil fields. Last month the firm announced it would be raising its five-year investment plan by 55% and has plans to invest $28.6 billion in 2009 alone.

Full details of the deal are likely to be revealed when Brazil's president Luiz Inacio Lula da Silva visits China in May.

On Wednesday China, through the China Development Bank, signed a similar $25 billion countertrade deal with Russian oil producers Rosneft and Transneft (Trade Finance 19/02/08).

Under the agreement Russia will supply 15 million metric tons (110 million barrels) of crude annually under a 20-year long-term contract to China. Proceeds for the deal will also be used to help build a branch of the East Siberia-Pacific Ocean (ESPO) oil pipeline towards China.

Petrobras was recently in talks to sign a $17.5 billion financing package with BNDES. The financing included a $5 billion tranche of bilateral loans with international banks. HSBC, JPMorgan and Santander have committed $4.5 billion to the deal with at least another three banks still in negotiations (Trade Finance 10/02/09).