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Sinopec to buy 30% stake in Galp Brazil
By Richard Fu |
November 11, 2011, Friday
|
Online Edition
Online Edition
CHINA Petrochemical Corp agreed to buy a 30 percent stake in the Brazilian unit of Portuguese oil company Galp Energia SGPS SA for US$3.54 billion -- the latest move in China's bid to acquire energy assets in Latin America.
China Petrochemical, known as Sinopec Group, said the deal would provide 21,300 barrels of oil equivalent per day in 2015. Output will peak at 112,500 barrels in 2024.
In comparison, Sinopec's flagship listed unit Sinopec Corp produced about 1.11 million barrels per day in the first nine months of this year, according to its earnings report.
Galp's main assets in Brazil include four deep water blocks in the Santos Basin. The offshore basin is the site of several recently discovered major oil fields.
Under the agreement, Sinopec will subscribe for new shares to be issued by Galp and assume shareholder loans.
"Taking into consideration this investment and projected future capital expenditure, the total cash payout amounts to approximately US$5.18 billion at closing," Sinopec said in a statement today.
The transaction needs approval from the Chinese government.
Sinopec Group last year paid US$7.1 billion for a 40 percent stake of Spanish oil major Repsol YPF's Brazilian unit.
Shares in Sinopec Corp settled 1.21 percent up in Shanghai today.
China Petrochemical, known as Sinopec Group, said the deal would provide 21,300 barrels of oil equivalent per day in 2015. Output will peak at 112,500 barrels in 2024.
In comparison, Sinopec's flagship listed unit Sinopec Corp produced about 1.11 million barrels per day in the first nine months of this year, according to its earnings report.
Galp's main assets in Brazil include four deep water blocks in the Santos Basin. The offshore basin is the site of several recently discovered major oil fields.
Under the agreement, Sinopec will subscribe for new shares to be issued by Galp and assume shareholder loans.
"Taking into consideration this investment and projected future capital expenditure, the total cash payout amounts to approximately US$5.18 billion at closing," Sinopec said in a statement today.
The transaction needs approval from the Chinese government.
Sinopec Group last year paid US$7.1 billion for a 40 percent stake of Spanish oil major Repsol YPF's Brazilian unit.
Shares in Sinopec Corp settled 1.21 percent up in Shanghai today.
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