Sinopec Group (SHI), China's second-largest oil and gas producer, will invest $7.1 billion in Repsol's (REP) Brazilian unit.
Sinopec will buy new shares in the Spanish company's Brazilian unit, giving the Chinese company a 40% stake, Bloomberg News said.
Repsol holds stakes in Brazil's Santos, Campos and Espirito Santo basins, and plans to invest as much as $14 billion by the end of 2019.
Last year, Sinopec bought Addax Petroleum Corp for C$8.3 billion ($8 billion), giving it access to oil reserves in Iraq and West Africa.
Chinese companies are hunting assets abroad to meet domestic demand in the country, now the world's largest energy consumer.
The Sinopec deal puts an end to Repsol's plans to sell shares in its Brazilian unit through an IPO.
Want to succeed? Then you need goals!View Course »