Aid Bid

When Petrobras, Brazil's government-owned oil monopoly, asked foreign oil companies late last year to submit bids for supplying 90,000 bbl. of crude oil a day to a projected new refinery in Rio de Janeiro, there was a string attached. In passing, Petrobras suggested that the oil companies might like to offer financial aid towards construction of the refinery. Last week word came from Brazil that Petrobras had accepted a Texas Co. offer to supply 15,000 bbl. of crude a day and to make a fiveyear, 6% loan of $6,000,000 to help cover the refinery building costs.

The deal was profitable in both directions. By offering the loan. Texaco built good will for continued sales of refined and crude products, helped build future demand. For Brazil the new plant will boost daily refining capacity to 243,000 bbl., 68,000 bbl. more than current consumption. When the refinery is built, Brazil will be close to balancing consumption and refining capacity for the first time in its history. Petrobras, however, is not yet out of the woods. Domestic production of crude oil is an embarrassingly low 25,000 bbl. a day--and exploration and development work still fall far short of meeting the country's needs. '

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