China’s Sinopec to pay $3.5 bn for Brazil oil stake

China’s Sinopec said Friday it will pay $3.54 billion for a 30 percent stake in the Brazilian unit of Portuguese oil giant Galp Energia, marking the latest push by Chinese companies into Latin America.

Asia’s top refiner said in a statement the transaction was subject to approval from the Chinese government.

Galp Energie SGPS SA operates four offshore blocks in the Santos Basin off Brazil, state-owned Sinopec said.

“The acquisition has further expanded Sinopec’s overseas oil and gas business operations and will make major contributions to the company’s oil and gas output growth,” Sinopec said in a statement.

The total cash payout will eventually reach about $5.18 billion, including the value of the 30 percent stake and projected future capital expenditure, Sinopec said.

China’s quest for energy is increasingly taking it to South America, as it seeks to shore up access to resources needed to fuel the world’s second largest economy.

Last December, Sinopec said it would buy the Argentine arm of US Occidental Petroleum Corporation for $2.45 billion, marking its first investment in Argentina’s upstream oil and gas sector.