From the Field
Angola, Brazil agree oil-for-financing deal
LUANDA, October 18, 2018 – The Angolan government has agreed to deliver 20,000 bopd of oil to Brazil as part of a new financing deal, local media reported Wednesday.
The two countries have signed a memorandum of understanding for a new credit line and export credit insurance deal worth USD 2 billion, Jornal de Angola reported.
“The Republic of Angola undertakes to maintain the financial flow relative to the annual supply of 20,000 barrels/day of crude oil, distributed in a cargo preferably every 45 days, making two quarterly shipments,” the agreement reads.
The Bank of Brazil will use the profits from these deliveries to pay down Angola’s debt and will return the final balance to the country.