China National Petroleum Corporation, known as PetroChina, has officially tapped into Brazil's energy production market with its drilling equipment technologies.

The oil giant announced Monday the formal establishment of a joint venture between its subsidiary Baoji Oilfield Machinery Co or BOMCO and two Brazilian companies.

PetroChina holds a 34 percent stake in the joint venture, and Brazil's BRCP and Asperbras hold a 33 percent stake each.

This has been the first time for a Chinese oil company cooperating with Brazil's companies in oil equipment manufacturing. According to local rules, oil drilling machines that are produced and assembled locally would be able to enjoy preferential policies in taxes and would be sold more easily.

Source:caijing