Chinese oil company Sinopec concludes process of taking stake in Repsol Brasil

29 December 2010

Madrid, Spain, 29 Dec – The shareholders of Repsol Brasil Tuesday approved a capital increase of US$7.111 billion to be totally subscribed by Chinese oil company Sinopec, Spain´s largest oil company said in a statement issued in Madrid.

“The general meeting of shareholders of Repsol Brasil today (Tuesday) approved, in Rio de Janeiro, a capital increase of US$7.111 billion totally subscribed by Sinopec,” said Repsol’s statement.

This decision is related to the signing of an agreement by Repsol and Sinopec last October for the sale of 40 percent of the Brazilian subsidiary of Spain’s largest oil company, via a capital increase of Repsol Brasil.

“After completing this operation, Repsol has 60 percent of the shares in Repsol Brasil and Sinopec has the remaining 40 percent,” the statement said noting that this ratio would also be reflected in the company’s board of directors.

The sale for Repsol will represent profit of US$3.757 million, according to the Spanish company, and Repsol Brasil will have a value of US$17.8 billion.

The funds gained from this operation, “secure the investments needed to develop the Brazilian offshore assets, which include some of the biggest discoveries in the world, such as those in the Guará and Carioca blocks,” off the coast of Sao Paulo state. (macauhub)