BEIJING -- Sinopec Group said Friday it has signed a deal with Galp Energia SGPS SA of Portugal to buy a 30-percent stake in the latter company's Brazilian division for $3.54 billion.

The total cash payout may reach nearly $5.18 billion if taking into consideration this investment and future expenditure, Sinopec Group said.

According to the agreement, Sinopec International Exploration and Production Corp, a wholly-owned subsidiary of Sinopec Group, will take new shares to be issued by Galp and assume shareholder loans, Sinopec Group said.

The deal is subject to approval by the Chinese government, it said.

The acquisition will greatly boost Sinopec's oil and gas output growth over the next decade. The company is expected to receive 21,300 barrels of oil equivalent every day in 2015, with a peak of 112,500 barrels per day in 2024, the company said.

Galp, Portugal's biggest oil company, holds stakes in 33 blocks of oil field in Brazil. Its primary assets in the South American country include four deep-water blocks in the Santos Basin, Sinopec Group said.

The company's shares rose 0.81 percent in Shanghai and 2.99 percent in Hong Kong in Friday's morning trading session.