HiPoSwitch focusing on novel gallium nitride-based transistors for more efficient power electronics
Researchers argue that the optimal use of biomass as a renewable resource is for production of select chemicals, not power, heat or fuels

Sinopec takes 30% stake in Galp Energia’s Brazilian subsidiary for $4.8B

Sinopec will infuse $4.8 billion into Galp Energia’s Brazilian subsidiary, Petrogal Brasil and other related operational subsidiaries, receiving 30% ownership, with Galp Energia retaining 70% ownership. In addition, Sinopec will make a shareholder loan to Petrogal Brasil in the estimated amount of $390 million, which will be used to reimburse 30% of the loans to Galp Energia of $1.3 billion.

This agreement will focus on the joint development of Galp Energia’s existing assets in Brazil, although there is the possibility for both parties to pursue, jointly or separately, further expansion in that region.

petrogal
Petrogal assets in Brazil. Click to enlarge.

Galp said that the capital increase significantly strengthens its capital structure, fully securing its funding needs for the future expansion and development of its upstream activities in Brazil.

Galp Energia’s upstream portfolio in Brazil comprises interests in 21 projects across seven basins, including the world-class discoveries in the pre-salt Santos basin, such as Lula, Cernambi and Iara fields. Galp Energia is one of the most leveraged players to the prolific Santos basin, holding also significant prospective acreage on other basins in Brazil.

Galp Energia’s Brazilian portfolio included, at the end of 2010, 3P reserves (proven plus probable plus possible) of 554 million boe, 3C contingent resources of 2,135 million boe and risked prospective resources (mean estimate) of 188 million boe, as certified by DeGolyer and MacNaughton.

Sinopec Group, ranked the 5th in the Fortune Global 500 in 2011, is China’s largest producer of refined oil products and major petrochemical products and its second largest crude oil producer. In 2010, Sinopec’s domestic crude output amounted to 298 MMbbl and natural gas production grew to 441 Bcf.

Sinopec has more than 42 projects in 21 countries, with total oversea proven and probable reserves of petroleum and natural gas of 5.55 billion bbl and 4.41 Tcf, respectively. In 2010, its annual oversea equity oil production reached 127 MMbbl. In recent years, Sinopec has enhanced its overseas portfolio through successful major acquisitions, such as the acquisition of Addax, Oxy Argentina Corporation, a 9.03% equity position in Canada’s Syncrude Company, 40% of the shares of Repsol Brazil and a stake in APLNG.

Comments

HarveyD

This looks a lot like a repeat of what was done a few decades ago, but by another major player form another part of the world.

The comments to this entry are closed.