China Steps up in Brazil Pre-Salt, through Galp

The last closing of the acquisition of 30% of the assets of Portugal's Galp Energy Company in Brazil by China Petroleum & Chemical Corporation (Sinopec), rises to USD 15.37 billion of Chinese state investment in exploration and production of oil and gas in Brazil. It also consolidates China's entry in the pre-salt Santos basin, without any of the state companies from this country has directly participated in bidding of the National Petroleum Agency (ANP). Sinopec paid $ 4.8 billion for all blocks in the process of exploration and production of Galp Petrogal gathered in Brazil, including a 10% share of the Portuguese Company, held on Lula (former Tupi) and Cernambi (formerly Iracema), some of discovered the most emblematic of the pre-salt in Santos basin. A subsidiary of Galp holds stakes in 20 blocks in Brazil, mostly in partnership with Petrobras. In the pre-salt the Luso-Chinese now also has 14% of Bem-Te-Vi (in block BM-S-8), 20% of Caramba (BM-S-21) and 20% of Jupiter (BM-S-24), all the pre-salt Santos. In operation, Sinopec also lent USD 360 million to pay debts of Brazil Petrogal with Galp. This was the second largest acquisition by Sinopec in the country. In 2010, the company bought for USD 7.1 billion, a 40% share in a company that also brought together the active exploration and production in the country of Spain's Repsol. Created so RepsolSinopec Brazil, a company of U.S. $ 18 billion. By purchasing a share of the Spanish, the Chinese company had access to fields Carioca and Guara, other giants of the pre-salt. Source: Valor Business, Translation EGE