OREANDA-NEWS. December 21, 2011. China Petroleum & Chemical Corp Ltd, also known as Sinopec, Asia's largest oil refiner, is preparing to spend EUR 2.7 billion or USD 3.5 billion to acquire a 10% stake in Repsol YPF, Spain's largest oil company, sources reported.

 Spanish property developer Sacyr Vallehermoso SA races to offload half of its 20% stake in Repsol to meet debt obligations in order to avoid a possible collapse, said a person familiar with the situation, adding that the real estate company has to raise funds in order to pay back loans worth EUR 4.9 billion.

 Reports said if Sinopec completes the acquisition, Sacyr Vallehermoso will grant the Chinese oil giant a seat on its board. Repsol has retained several advisers, including Goldman Sachs Group Inc, JPMorgan Chase & Co and Swiss investment bank UBS AG.

 Sinopec and Sacyr Vallehermoso have not yet commented on the news.