MADRID ( TheStreet) -- Repsol, the Spanish oil and gas company, and Sinopec ( SNP), the Chinese oil and petrochemicals giant, formed a Brazil joint venture worth $17.8 billion.

The companies will develop the projects of Repsol Brasil, the upstream subsidiary of Repsol in Brazil, creating one of Latin America's largest energy companies, Repsol said in a statement Friday.

Repsol Brasil plans to issue new shares valued at $7.1 billion to which Sinopec will fully subscribe. Repsol will hold 60% of the shares of Repsol Brasil while Sinopec will hold 40%.

Repsol Brasil's assets are currently valued at $10.66 billion.

"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 said in the press release.

-- Written by Joseph Woelfel

>To contact the writer of this article, click here: Joseph Woelfel

>To submit a news tip, send an email to:

If you liked this article you might like

Energy Takes a Backseat as Crude Oil Stabilizes Under $50

China Communist Party Has Just Become Besties With Hong Kong

Hong Kong Investors Now Have a Comrade Shareholder: the Communist Party

Dow Scores Ninth Straight Record Close With Tiny Gains, S&P 500 at All-Time High

Dow Is Back on Track to Close at a Record High as Consumer Staples Lead