Repsol completes sale of Brazilian unit stake to Sinopec

28th December 2010, Comments 0 comments

Spanish energy giant Repsol shareholders on Tuesday approved the sale of 40 percent of its Brazilian affiliate to Sinopec, China's largest oil group, for 7.1 billion dollars (5.2 billion euros).

"The general assembly of Repsol Brazil shareholders held in Rio de Janeiro today approved the capital increase of 7.1 billions euros which was subscribed in full by Sinopec," the Barcelona-based company said in a statement.

"After this operation, Repsol holds 60 percent of shares in Repsol Brazil and Sinopec the remaining 40 percent," it added.

The deal, which was first announced in October, provides Repsol with funds for development of oil fields in Brazil.

Under the agreement Repsol and Sinopec will continue with expansion plans in Brazil and participate, jointly or separately, in future rounds of tenders in the country.

Sinopec is already involved in exploration and production in more than 20 countries and, like other major Chinese oil companies, it is seeking overseas investments in oil and gas resources to meet China's soaring demand for energy and commodities.

China's energy consumption has become the world's second largest on the back of years of double-digit economic growth.

© 2010 AFP

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