China's largest oil refiner Sinopec spends US$5.18 billion for a 30 percent stake in Galp's Brazilian unit. [File photo]

China's largest oil refiner Sinopec Group announced that it has signed a deal with Portugal's Galp Energia on Nov. 11 to spend US$5.18 billion for a 30 percent stake in its Brazilian unit, the largest acquisition secured by a Chinese oil company this year.

The deal will help Sinopec obtain 25 licenses to operate seven offshore and onshore basins in Brazil. The assets are expected to churn out 21,300 barrels of oil-equivalents a day in 2015, and will peak at 112,500 barrels of oil-equivalents a day in 2024, according to Sinopec's forecast.

Sinopec shares were boosted after the deal was announced. It closed at HK$8.28 (US$1.06) on HKEX Friday.

The investment was the second one that Sinopec made to acquire Brazilian assets. The company took a 40 percent stake in Repsol's Brazil business for US$7.1 billion last year.

As Portugal's largest oil company, Galp had been looking for potential buyers of its partial stake to ease its capital burden since the financial crisis in 2009.

Sinopec said the deal is still awaiting an approval from Chinese regulators. If it is approved, Sinopec will gain an upper hand over the competition with foreign companies, said Zhang Bin, an analyst at Chem99.com.

China's business press carried the story above on Monday.

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