Deal Insight
Sinopec acquires 30% stake in Galp's Brazilian subsidiary with a US$5.2 billion capital injection
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Report summary
Sinopec is to acquire a 30% stake in Galp Energia's Brazilian subsidiary, Petrogal Brasil. The transaction is a capital increase, rather than a 'clean' acquisition. The structure of the deal is analogous to Sinopec's 2010 purchase of a 40% stake in Repsol Brasil. In total, Sinopec will inject US$5.18 billion of cash. Accounting for balance sheet impacts, the effective acquisition cost is US$3.74 billion.We value a 30% stake in Galp's Brazilian portfolio at US$2.2 billion ...
Table of contents
- Executive summary
- Transaction details
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Upstream assets
- Santos Basin pre-salt cluster
- Technical resources
- Other basins
-
Deal analysis
-
Upside analysis
- Commercial assets
- Technical resource base
- Exploration potential
- Precedent transaction analysis
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Upside analysis
-
Strategic rationale
- Sinopec
- Galp Energia
- Oil & gas pricing and assumptions
Tables and charts
This report includes 8 images and tables including:
- Deal analysis: Table 1
- Oil & gas pricing and assumptions: Table 1
- Oil & gas pricing and assumptions: Table 2
- Upstream assets: Table 1
- Wood Mackenzie base production and capex forecasts (30% of Petrogal Brasil)
- Inferred breakdown of value (commercial vs. upside) at base and high oil price scenarios
- Per barrel resource acquisition costs vs. WoodMac NPV per boe estimates
- Galp Energia indexed share price performance post deal announcement
What's included
This report contains:
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