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8 Pages

Sinopec acquires a 40% stake in Repsol Brasil

Sinopec acquires a 40% stake in Repsol Brasil

Report summary

* UPDATE: In light of further clarification from Repsol YPF on the structure of this deal, we have amended our previously published Insight to reflect an effective purchase price of US$4.3 billion. Wood Mackenzie's base case valuation of Repsol Brasil remains unchanged. Sinopec is to acquire a 40% stake in Repsol Brasil. The deal is structured such that Repsol Brasil will increase its share capital by issuing new shares, to which Sinopec will fully subscribe. On completion of the ...

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  • Sinopec acquires a 40% stake in Repsol Brasil PDF - 471.48 KB 8 Pages, 5 Tables, 3 Figures


The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
    • Base case valuation falls well short of the US$4.3 billion consideration
    • Much more aggressive assumptions have been used in valuing the transaction
  • Strategic rationale
    • Sinopec's most ambitious move yet
    • Taking a long-term view and increasingly willing to partner with IOCs
    • Repsol YPF
  • Oil & gas pricing and assumptions

In this report there are 8 tables or charts, including:

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Implied breakdown of value at different oil price scenarios (US$M)
    • Implied breakdown of reserves at different oil price scenarios (mmboe)
  • Strategic rationale
    • Strategic rationale: Table 1
    • Net Brazilian reserves and acreage
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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