October 6, 2010
Repsol and China’s Sinopec have entered into an agreement to jointly develop the projects of Repsol Brasil, the upstream subsidiary of Repsol in Brazil, creating one of Latin America’s largest privately-owned energy companies, valued at $17.773 billion. Repsol will retain 60% of the resulting company and Sinopec, China’s second largest oil company, will have a 40% stake. The injection of funds generated by this transaction will allow Repsol Brasil to fully develop all of its current projects, which include some of the world’s largest exploratory discoveries in recent years. Repsol is one of the largest independent upstream operators in Brazil and the country’s third-largest oil producer in 2009. It is the largest foreign owner of exploratory blocks, with presence in the Santos, Campos and Espiritu Santo Basins.
Latham & Watkins LLP advised Repsol in the transaction with a corporate team led from the firm's Madrid office by mergers & acquisitions partner José Luis Blanco, together with partner Ignacio Pallarés and associate Xavier Pujol. Advice was also provided by partner Martin Saywell on English law, partner Jeff Lawlis on US law and partner Kenneth Chan on Chinese law matters.