Sinopec, one of the world’s largest oil companies, will invest $7.1 billion
Repsol and Sinopec form an alliance in Brazil to create one of Latin-America´s largest private energy groups, valued at $17.8 bln
Press Release01/10/2010 15:34
Repsol Brasil will carry out a capital increase worth more than $7.1 billion, which Sinopec will subscribe in its entirety, resulting in a company valued at $17.8 billion.
The company will be one of Latin-America’s largest privately-owned energy companies. Repsol will retain 60% of the resulting company and Sinopec, China’s second largest oil company, will have a 40% stake.
With this new investment, Repsol Brasil is fully capitalized to develop all of its current projects in Brazil, including world class discoveries in the Guara and Carioca pre-salt basins.
Repsol and Sinopec will continue their respective expansion plans in Brazil and will participate, jointly or individually, in future bidding rounds in the area.
This transaction between two world class groups bears testimony to the value of the exploratory activity carried out by Repsol in Brazil in the last few years.
“We are very pleased to share the development of Repsol’s Brazilian projects with an internationally renowned and experienced partner as is Sinopec. Together we can help expand business relations between our countries,” said Repsol Chairman Antonio Brufau.
Sinopec is the largest petroleum and petrochemicals company in China and has oil and gas exploration and production projects in more than 20 countries.