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Sinopec's $7 Billion 100 Million Entry Into Brazil Oilfield Exploration Project

2010/10/2 15:12:00 55

Ray Pschorr, Repsol of Spain's largest oil company, announced on Friday that Sinopec Group will buy 40% of its flag subsidiary Western subsidiary at a price of 7 billion 100 million US dollars to finance its exploration projects in Brazil's Guara and Carioca oil fields.

According to Repsol, the value of the company's assets in Brazil is about $10 billion 700 million. After the paction is completed, the company will become one of the largest private energy companies in Latin America.

Repsol still owns 60% of the joint venture.

This will be

Sinopec

Following last year's purchase of Addax Petroleum Corp at 8 billion 300 million yuan (about 8 billion U.S. dollars), Iraq and

West Africa crude oil

After mining, there was another large-scale overseas energy investment case.

The paction will be realized through the expansion of capital.

Through this paction, the company will get the funds needed for the development of oil projects in Brazil.

Ray Pschorr oil company will issue new shares for Brazil business, and the new purchaser will be the China Petrochemical Corporation.

After the paction is completed, the market value of the Brazil Business Department of the company will reach US $17 billion 800 million.

Repsol said, "with the support of Sinopec's injection, Repsol Brazil branch will have sufficient funds to develop all its existing projects in Brazil, including world-class Guara and Carioca oil fields.

The two companies will continue their expansion plans in Brazil and will jointly or individually participate in the tender for Brazil's oil projects.

According to the statistics of 2009,

Repsol

It is the third largest oil supplier in Brazil and the largest number of foreign oil exploration companies in Brazil.

Repsol said in a statement on Friday, "the agreement between Repsol and Sinopec will help the two companies reach comprehensive cooperation in the development of existing projects.

At the same time, the two companies can develop other Brazil oil projects in the form of joint venture or independent operation.

Repsol continues to point out that the company and Sinopec will continue their expansion plans in Brazil and will jointly or separately participate in the bidding activities in the region in the future.

The company currently holds shares in oil basins such as Santos, Campos and Espirito in Brazil, and says it will invest up to $5 billion from 2010 to 2014, and will invest up to 9 billion dollars in 2015 to 2019.