Sinopec Deals for Repsol Brazilian Unit

Friday, October 1, 2010 @ 02:10 PM gHale

China’s Sinopec Group will pay 7.1 bullion buy 40 percent of Spain’s Repsol Brazilian arm.
The deal will fund development of Repsol’s deposits in Brazil, one of the most important exploration markets in the world since the discovery of massive subsalt oil reserves off its coast.
“We are delighted to share the development of the Brazilian projects with a partner with recognized prestige in the sector like Sinopec,” said Repsol chairman Antonio Brufau.
Sinopec will bring in a $7.1 billion capital hike to Repsol Brazil to create one of the largest private energy companies in Latin America.
Fast-growing China has invested heavily in mining and oil assets in Latin America and Africa in recent years.
In Latin America, oil-producing Brazil, mineral-rich Peru and oil- and soy-producing Argentina have been the biggest focus for China’s foreign direct investment.
Sinopec said the company was targeting the production of 200,000 barrels per day oil equivalent from the mostly offshore blocks.
Repsol, in partnership with Brazilian state-run oil company Petrobras, has a stake in some of the larger deep-water subsalt blocks off Brazil’s southern coast, including a 25 percent stake in BM-S-9 which holds the Guara and Carioca fields.
Guara holds 1.1 billion to 2 billion barrels of recoverable oil, and Carioca, considered a promising field, has not yet yielded production estimates.

2 Responses to “Sinopec Deals for Repsol Brazilian Unit”

  1. Sinopec Deals for Repsol Brazilian Unit |…

    I found your entry interesting do I’ve added a Trackback to it on my weblog :)…

  2. Sinopec Deals for Repsol Brazilian Unit |…

    Here at World Spinner we are debating the same thing……

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