Sinopec studies increasing operations in the country
Valor Econômico
After investing US$ 7.1 billion to buy 40% of the assets of Repsol in Brazil, the Chinese Sinopec wants to take part in the forthcoming bidding rounds for exploration blocks in Brazil, whether such agreements are made under the system of concession or under the new production sharing system in the areas of the pre-salt layer. The President of Sinopec International and Production Brazil, Jingjun Ding, said yesterday China sees Brazil as a strategic area.
"We understand Brazil has a stable market", said Ding. The Chinese company may take part in the rounds of the National Oil Agency (ANP) alone, in partnership with other companies or by means of Repsol Sinopec Brasil - name of the company constituted after the entrance in the capital of the Spanish company in the country. The partnership provided it access to the pre-salt, through the participation in the BM-S-9 block, in the basin of Santos, where were made the discoveries of the pre-salt deposits of Guará and Carioca.
The Executive - who will be the exploration officer in Brazil - informed the Chinese currently still negotiates with Repsol how will be made the sale of the oil produced in the country in the society between the two companies. The goal is to close long-term contracts so that the sale be made in Brazil or in the international market. The deal between Repsol and Sinopec involving the assets of the Spanish company in Brazil was the second highest amount paid by a Chinese oil company to acquire companies abroad since 2002.
On a survey on the acquisitions of the State companies Sinopec, China National Offshore Oil Corporation (CNOOC), Sinochem and China National Petroleum Corporation (CNPC) and subsidiaries in the period, the International Energy Agency found out the greatest disbursement was also made by Sinopec, which in June 2009 paid US$ 8.8 billion for 100% of Addax, an Iraqi oil company.