Spanish oil major Repsol and China’s Sinopec will form an alliance in Brazil valued at $17.8bn.
Sinopec will buy a 40% stake in the joint venture for $7.1bn, while Repsol will retain the remaining interest.
The deal is expected to help Repsol develop costly subsalt deposits, which have been estimated to hold 50 billion barrels of crude.
Sincopec is aiming for a production of 200,000 barrels per day oil equivalent from its acquired interests.
Repsol holds stakes in Brazil’s Santos and Espirito Santo basins and plans to invest $14bn through 2019 to increase crude output.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData