Sinopec of China buys $7.1bn stake in Repsol Brasil

Chinese oil firm Sinopec is to pay $7.1bn (£4.5bn) for a 40% stake in the Brazilian energy projects of Repsol.

It means that the subsidiary - Repsol Brasil - now has enough money to develop its major offshore assets in the Guara and Carioca basins, near Rio de Janeiro and Sao Paulo.

The Spanish company will retain a 60% controlling stake the company.

The agreement leaves the two oil giants free to compete with each other for new business in Brazil.

"We are very pleased to share the development of Repsol's Brazilian projects with an internationally renowned and experienced partner as is Sinopec," said Repsol's chairman, Antonio Brufau.