Sinopec acquires Portugal's largest oil company

Sinopec Group disclosed yesterday that it has signed an equity subscription agreement with Portugal's Galp Energy Corporation and obtained a 30% stake in Galp Brazil and the corresponding Dutch service company through the subscription of additional shares and claims.

The acquisition of Galp Brazil’s 30% equity asset price was US$3.54 billion. However, taking into account the increase in capital and the share of investment in subsequent projects, the total capital injection amounted to approximately US$5.18 billion. This is also the largest overseas project acquisition by Chinese oil companies during the year, and it is also the second largest overseas acquisition in the history of Sinopec.

Galp is Portugal's largest oil company. Through this acquisition, Sinopec will obtain a total of 25 permits for Galp Brazilian company's 7 basins located on the sea and land in Brazil. The 33 blocks will have different proportions of rights and interests, and they will be responsible for the 8 blocks on land. Operators. However, Sinopec disclosed that the transaction still needs the approval of the Chinese government.

Sinopec is currently the largest refiner in Asia, with 224 million tons of crude oil processing capacity. However, due to being trapped in the “short board” of upstream exploration, more than 70% of crude oil relies on external supply. Sinopec revealed yesterday that the acquisition has contributed a lot to the growth of oil and gas during the 12th Five-Year Plan period.

Zhao Shanqiang, a partner of Deloitte China Audit and Risk Management, said yesterday that he is currently in debt crisis in Europe and that a large number of European companies are waiting in line for funds to come in. This is also the best time for Chinese companies to enter Europe.