By WAYNE MA
China Petrochemical Corp. said Friday that
it has signed an agreement to buy a 30% stake in the Brazilian
unit of Portuguese oil company Galp Energia SA for $3.54
The transaction, which requires approval from the Chinese
government, would allow state-owned Sinopec Group to obtain
21,300 bpd of oil equivalent of equity output in 2015, Sinopec
said in a statement.
Under the agreement, subsidiary Sinopec International Exploration & Production Corp.
will subscribe new shares to be issued by Galp, it said.
"Taking into consideration this investment and projected future capital
expenditure, the total cash payout amounts to approximately
$5.18 billion at closing."
Galp's assets in Brazil include four deep-water blocks in
the Santos Basin, it said.
"It is expected that Sinopec will obtain 21,300 barrels of
oil equivalent a day of equity output in 2015, reaching peak
output in 2024 at 112,500 barrels oil equivalent a day," it
Dow Jones Newswires