Galp says Sinopec deal to fully fund Brazil projects

Portuguese oil company Galp Energia said on Friday its deal with China’s Sinopec to sell a 30 percent stake in Galp’s Brazilian unit for $3.5 billion will fully fund its part of costly but highly lucrative projects in the South American country.

“This capital increase significantly strengthens Galp Energia’s capital structure, fully securing its funding needs for the future expansion and development of its upstream activities in Brazil,” Galp said in a statement.

Galp, largely a refiner and a newcomer into the world of big oil, needed to raise the money to finance its part in the development of massive oil fields in Brazil’s so-called subsalt region — site of the largest oil discovery in the Americas for more than 30 years.