Feb. 20, 2009 (China Knowledge) - An agreement was reached on Thursday between China and Brazil, promising a daily supply of 100,000 to 160,000 barrels of oil to China, announced the Brazilian Ministry of Foreign Affairs.

The agreement, signed by Chinese Vice President Xi Jinping and Brazilian President Luiz Inacio Lula da Silva after a meeting in Brasilia, came into effect upon being announced.

In addition, the two officials also discussed the possibility that China would offer a maximum of US $10 billion in loans to Brazilian state-owned Petroleo Brasileiro SA Petrobras to fund an oil-refining project on the southern Brazilian coast, which recently proved to have 80 billion barrels of high quality light oil reserves.

The agreement represents part of China's efforts to ensure its future supply of major natural resources, including oil, agricultural products, and ores.

China signed a deal with Russia on Feb 17 to lend $25 billion to two Russian oil firms, which in turn will sell 15 million tons of crude oil a year to China for the next 20 years.