China's Sinopec takes $4.8BN stake in Brazil oil

AP News
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Posted: Nov 11, 2011 6:44 AM
China's Sinopec takes $4.8BN stake in Brazil oil

Portuguese energy company Galp Energia says China's Sinopec is paying $4.8 billion (euro3.5 billion) for a 30 percent stake in its Brazilian subsidiary Petrogal Brasil.

Chinese energy companies have in recent years looked abroad for resources to ensure supply for the country's fast-growing economy.

Last year, Spanish energy company Repsol sold a 40 percent stake in its Brazil subsidiary to Sinopec for $7.1 billion.

Lisbon, Portugal-based Galp Energia SGPS, S.A. said Friday the deal with China Petroleum and Chemical Corp., or Sinopec, would help it expand operations in Brazil.

Galp said the agreement is subject to regulatory approval.