China Petrochemical Corp. (Sinopec; SNP.NYSE, SNP.LSE, 6000028.SH, 0386.HK) is in negotiations to acquire a stake in Galp Energia SGPS (GALP.Euronext), Bloomberg reported, citing people familiar with the matter. The Portugese company said earlier this year it was looking to sell part of its Brazilian unit for US$2.7 billion, though it later increased the amount on offer to 40% of the firm. The company has stakes in four offshore blocks in Brazil’s Santos Basin, and has been looking for investors to finance oil field developments off the coast. Galp is negotiating with another, unknown, bidder ahead of a deadline for final bids later this month. Sources say that Sinopec returned to the negotiating table with Galp after it considered taking a stake in the Brazilian assets of BG Group (BG.LSE). Last year, the Chinese company agreed to invest US$7.1 billion in Repsol’s (REP.BMAD) Brazilian assets.