OREANDA-NEWS. October 29, 2012. Brazil's National Petroleum Agency ANP has approved Chinese oil company Sinochem's purchase of a 10 percent stake in five offshore blocks as the state-run company continues its expansion into Latin America's hottest oil frontier.

Sinochem purchased the stakes in January from the local unit of French oil and natural-gas company Perenco and the deal was approved at the ANP's Oct 3 board meeting.

The deal continues the growing presence of Chinese companies in Brazil particularly in offshore oil and natural-gas exploration, with several billion-dollar deals having been completed in recent years to tap into Brazil's rising crude oil production.

Previously, Sinochem acquired a 40 percent stake in Norway's Statoil ASA's Peregrino field for USD 3.07 billion.

Sinochem acquired a 10 percent working stake in five blocks of the offshore Espirito Santos Basin in return for funding exploration-commitment wells.

Perenco retains a 40 percent operator stake in the blocks, with partner OGX Petroleo e Participacoes holding the remaining 50 percent.

 Founded in 1950, Sinochem Corporation is China's largest trading company and its first multinational conglomerate.

Sinochem deals primarily in petrochemicals distribution but also in rubber, plastics and agrochemicals.

It operates through more than 100 subsidiaries in China and abroad in concerns ranging from petroleum trading to real estate.