Repsol Successfully Completes Capital Increase in Brazil, Subscribed in its Entirety by Sinopec

Repsol and Sinopec today successfully closed the agreement reached in October to jointly develop the exploration and production of its Brazil offshore assets and to create one of the Latin America’s largest private energy companies.

After obtaining the necessary authorizations from the authorities of the People’s Republic of China, Sinopec has subscribed in its entirety for a capital increase of Repsol Brazil of $7.1 billion, which has resulted in a company valued at $17.8 billion. After completing this transaction in the shareholders’ meeting held today in Rio de Janeiro, Repsol holds 60% of the shares of Repsol Brazil while Sinopec holds the remaining 40%. These shareholdings are reflected in the composition of the Board of Directors of the company, made up by 10 members and chaired by Nemesio Fernandez-Cuesta, Repsol YPF’s Executive Managing Director of Upstream.

Both companies have signed a shareholders’ agreement to jointly develop the current exploration and production businesses in Brazil, bringing together the necessary resources and sharing certain operational and financial strategic decisions.

In order to determine the results of this transaction in its consolidated financial statements, Repsol has applied the criteria laid out in NIC 31. This has resulted in a capital gain of $3.8 billion corresponding to 40% of the value assigned to Repsol’s assets in Brazil, after reducing their book value.

The injection of funds by Sinopec in this transaction will allow Repsol Sinopec Brazil to fully develop all of its current projects, which include some of the world’s largest exploratory discoveries in recent years. Brazil’s Offshore boasts one of the world’s fastest-growing oil and gas reserves.

The agreement between Repsol and Sinopec highlights the enormous international interest in the pre-salt exploration and production activity led by Petrobras, where Repsol Brazil has a very high profile due to the quality of its assets in that area.

Both Repsol and Sinopec will continue their expansion plans in Brazil and will participate, jointly or independently, in future bids in Brazil.

Antonio Brufau said, “This agreement becomes a milestone in the development of Repsol’s exploratory strategy and is a good value reflection of our commitment in Brazil, with a great industrial partner as is Sinopec”.

Source: Repsol, December 29, 2010;

Share this article

Follow LNG World News

3 thoughts on “Repsol Successfully Completes Capital Increase in Brazil, Subscribed in its Entirety by Sinopec”

Comments are closed.

Events>

<< May 2016 >>
MTWTFSS
25 26 27 28 29 30 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

CWC’s 14th World LNG Series: Americas Summit & Exhibition

The World LNG Series: Americas Summit & Exhibition, now in its 14th year, is the forum of choice…

read more >

Colombia Oil & Gas Conference

The event is a platform for national and international players to meet with Colombian government representatives…

read more >

LNG Fuel Forum North America

LNG Fuel Forum North America highlights marine LNG fuel supply, regulation and conversion experiences…

read more >

APPEA Conference & Exhibition 2016

The APPEA Oil and Gas Conference & Exhibition is the largest annual upstream oil and gas event in the southern hemisphere…

read more >