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Strategies & Market Trends : Speculating in Takeover Targets -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (2973)	11/11/2011 1:06:35 AM
From: richardred	Respond to of 7242

UPDATE 2-Sinopec to buy 30 pct stake in Galp Brazil for $3.5 bln Thu Nov 10, 2011 11:57pm EST BEIJING Nov 11 (Reuters) - Chinese state-owned oil company Sinopec Group said on Friday it had reached an agreement with fuel and oil firm Galp Energia SGPS SA of Portugal to acquire a 30 percent stake in its Brazilian unit for $3.54 billion. Under the agreement, Sinopec's wholly owned unit, Sinopec International Exploration and Production Corp (SIPC), will take new shares to be issued by Galp and assume shareholder loans, Sinopec Group said in a statement. "Taking into consideration this investment and projected future capital expenditure, the total cash payout amounts to approximately $5.18 billion at closing," Sinopec said. It is the latest move to win influence over Western-owned energy assets by a firm from China, which has been scouring the globe to secure access to energy to fuel its growing economy. The acquisition has further expanded Sinopec's overseas oil and gas business operations and will make major contributions to the company's oil and gas output growth, it said. Sinopec, Asia's largest refiner, is expected to receive 21,300 barrels of oil equivalent per day in 2015, reaching a peak of 112,500 barrels of oil equivalent per day in 2024, it said. Galp's primary assets in Brazil include four deep-water blocks of BM-S-11BM-S-24BM-S-8 and BM-S-21 in the Santos Basin, it said. The transaction must be approved by the Chinese government, it added. Sinopec Group is the parent of Hong Kong-listed and Shanghai-listed China Petroleum & Chemical Corp (Sinopec) . The group does overseas upstream oil and gas investment and operations via its wholly owned unit SIPC. Galp has said it planned to raise money by selling a stake in Galp Brazil Services to finance its part in the development of massive oil fields in Brazil's so-called subsalt region -- site of the largest oil discovery in the Americas in more than 30 years. (Reporting by Judy Hua and Ken Wills) reuters.com