State-owned Chinese oil majors Sinopec Group and CNOOC have held talks with Brazilian oil and gas start-up OGX (OGXP3.SA: Quote) to buy some of the latter's oil assets, Chinese media said, the latest effort to further expand its presence in the South America nation.
Both Sinopec and CNOOC have held talks separately with OGX, but neither has signed any legally-binding agreement, the 21th Century Business Herald reported, citing unnamed sources.
The subject of the negotiations was a 20 percent stake in an offshore oil field in Brazil's Campos Basin, the report said.
OGX, owned by Brazil's billionaire industrial magnate Eike Batista, said last year it was preparing to sell 20 percent stakes in some of its offshore oil blocks.
The firm said this week it had made a massive natural gas discovery in onshore blocks in the state of Maranhao that could hold 15 trillion cubic feet of reserves. [ID:nN16213023]
A Sinopec media official declined any knowledge of the negotiation and calls to CNOOC were not answered.
China has become the biggest foreign direct investor in Brazil this year with purchases ranging from oil stakes and iron ore mines to vast tracts of farmland, as the soon-to-be world's second-largest economy scoured the globe for resources to feed its booming economy.
In May, state-owned Sinochem Corp won a $3.07 billion stake in a Statoil (STL.OL: Quote) offshore oilfield in Brazil.
Sinopec, CNOOC Seek Slice of Brazilian Oil Assets
Source : Oil and Gas Eurasia