Africa Oil & Gas: Angola pays for Brazilian financing with oil

The Angolan government will deliver the equivalent of 20,000 barrels of oil per day to Brazil, as part of negotiations for a new credit line and export credit insurance deal worth US$2 billion, Angolan state newspaper Jornal de Angola reported.

Angola and Brazil have signed a memorandum of understanding that establishes the “criteria for granting,” Export Credit Insurance coverage to Angola under the Export Guarantee Fund (FGE) with funds from the Export Financing Programme (Proex),” which is the main public instrument to support Brazilian exports of goods and services.

The new agreement guarantees financing for exports of goods and services from Brazil to Angola.

“It will be up to the Angolan government to indicate the operations that will be analysed by the Brazilian government,” according to the protocol, which adds that bank financing for these exports will also be guaranteed, “under specific financial conditions.”

According to the agreement, Angola “undertakes to maintain the financial flow relative to the annual supply of 20,000 barrels of crude oil per day, shipped, preferably every 45 days, making up two quarterly shipments.”

Banco do Brasil will manage these deliveries that will be used to “repay” the Angolan debt, by setting up deposits to pay down the maturing debt, and the final balance will be returned to Angola.”

According to the latest OPEC monthly report, Angola reached daily production of 1.519 million barrels of crude oil in September, compared with 1.462 million the previous month. (macauhub)

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