Repsol, Sinopec create Brazil super-group
Repsol and Sinopec have agreed to develop jointly the projects of Repsol Brasil, creating a new company valued at $17.773 billion.
MADRID, Spain -- Repsol and Sinopec have agreed to develop jointly the projects of Repsol Brasil, creating a new company valued at $17.773 billion.
Under the agreement, Repsol Brasil will increase its share capital by issuing new shares to which Sinopec will fully subscribe. This will leave Repsol with 60% of the shares, the remaining 40% held by Sinopec.
The resultant injection of new funds will help Repsol Brasil progress its current projects. Repsol is one of the largest upstream operators in Brazil, and claims to have been the country’s third-largest oil producer in 2009.
It is the largest foreign owner of exploratory blocks, with interests throughout the Santos, Campos, and Espiritu Santo basins. It is a partner in the producing Albacora Leste field and various discoveries in the Guara and Carioca pre-salt basins.
The agreement with Sinopec involves full collaboration in development of existing projects in Brazil, also allowing both companies to expand their activities in the country jointly or independently.