Deals
Sinopec Group Pays ‘Very High’ Premium for Brazil Oil
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China Petrochemical Corp. is paying a 76 percent premium to take a stake in Repsol YPF SA’s Brazilian unit as the world’s biggest energy user switches its hunt for oil reserves to Latin America from Africa.
Sinopec Group, as China’s second-largest energy company is known, agreed Oct. 1 to pay $7.1 billion for a 40 percent stake in Madrid-based Repsol’s unit, which has reserves in the same area as the biggest oil discovery in the Americas this century. That amounts to $15 a barrel compared with the $8.50 Petroleo Brasileiro SA paid last month for assets in Brazil, said Neil Beveridge, an analyst at Sanford C. Bernstein & Co.