China Petrochemical Corp (Sinopec; SNP.NYSE, SNP.LSE, 600028.SH, 0386.HKG) agreed to purchase a 30% stake in the Brazilian unit of Portuguese firm Galp Energia (GALP.ELI) for US$3.54 billion, the latest in the firm’s drive to acquire Brazilian assets, The Wall Street Journal reported. The deal, which will require the approval of Chinese authorities, could provide Sinopec with 21,300 barrels of oil-equivalent per day by 2015, peaking at 112,500 barrels a day in 2024. Sinopec will buy shares to be issued by Galp for a projected US$5.18 billion at closing, after investment and future capital expenditure costs are included, according to Sinopec officials. Sinopec, which bought 40% of Repsol’s Brazilian unit for US$7.1 billion last year, is only one of many Chinese state-owned oil companies moving into Brazil after as much as 100 billion barrels of deep-sea oil deposits were discovered in 2009.
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