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Overview

W.I.P. provides $360 million shareholder loan for acquisition of 30% ownership stake in Petrogal Brasil, S.A. and Galp Brazil Services B.V.

Commitments (Constant USD, 2023)$390,174,420
Commitment Year•2012Country of Activity•BrazilDirect Recipient Country of Incorporation•BrazilOverseas Jurisdiction•LuxembourgSector•EnergyFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 28, 2012
Start (actual)
Mar 28, 2012
End (actual)
Mar 28, 2012

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned companies

  • Winland International Petroleum SARL (WIP)

Receiving agencies

Private Sector

  • Petrogal Brasil

Loan description

W.I.P. provides $360 million shareholder loan for acquisition of 30% ownership stake in Petrogal Brasil, S.A. and Galp Brazil Services B.V.

Interest type•Unknown

Narrative

Full Description

Project narrative

On November 11, 2011, Galp Energia signed an investment agreement with Tiptop Energy, Ltd, a wholly owned subsidiary of Sinopec Group, related to a capital increase in two subsidiaries of Galp Energia: Petrogal Brasil, S.A. and Galp Brazil Services B.V. Following the investment agreement, financial close was reached in March 2012, with Winland International Petroleum, SARL (W.I.P.), a subsidiary of Tiptop Energy, Ltd, holding a 30% stake and voting rights in Petrogal Brasil, S.A. and Galp Brazil Services B.V. On March 28, 2012, W.I.P. provided a $360 million shareholder loan to Petrogal Brasil, S.A. to acquire a 30% ownership stake in Petrogal Brasil, S.A.. The loan was to be ‘reimbursed to Galp Energia, at the holding level.’ On the same day, W.I.P. subscribed and made a capital injection of $4,797,528,044.74 in subsidiaries Petrogal Brasil, S.A. and Galp Sinopec Brazil Services B.V. (formerly Galp Brazil Services B.V.). This enabled Sinopec to acquire a 30% ownership stake in Petrogal Brasil, S.A.

Staff comments

1. More research is needed to determine whether Winland International Petroleum, SARL (W.I.P.) — or another Sinopec subsidiary — was the lender of record. 2. Galp Energia is an integrated energy company with diversified activities across the World. While its refining and marketing activities are centered in Iberia, its upstream presence focus in the resource-rich South Atlantic area that includes Brazil’s pre-salt Santos basin and the Angolan offshore. In the upstream, Galp Energia is also present in the recent world class gas discoveries in Rovuma basin in Mozambique. Galp Energia is currently present in 13 countries: Portugal, Spain, Brazil, Angola, Mozambique, Venezuela, Cape Verde, Guinea-Bissau, Swaziland, Gambia, East Timor, Uruguay and Equatorial Guinea. Galp Energia’s upstream portfolio in Brazil comprises interests in 20 projects across seven basins, including the world-class discoveries in the pre-salt Santos basin, such as Lula and Iara fields. Galp Energia is one of the most leveraged players to the prolific Santos basin, holding also significant exploration acreage on other basins in Brazil.