BP reached an agreement to buy a majority stake in a Brazilian ethanol and sugar producer with the aim of expanding its role in renewable fuel markets, according to a report by Bloomberg. Under terms of the deal, BP will pay about $680 million for 83 percent of Cia. Nacional de Acucar & Alcool and will refinance all of CNAA’s existing long-term debt. When the assets are fully developed, Bloomberg reports the deal will increase BP’s Brazilian production to 1.4 billion liters of ethanol equivalent a year, or nine million barrels.

Chief Executive Officer Robert Dudley is moving BP’s operations closer to faster-growing emerging-market countries such as Brazil, Russia, India and China. Bloomberg says the expansion of BP’s ethanol business follows rival Royal Dutch Shell Plc (RDSA), which agreed to merge assets with Cosan SA Industria & Comercio to form the world’s largest sugar-cane producer.

Since the start of the year, Bloomberg reports BP has entered joint ventures in Russia and India for offshore oil and gas exploration. BP sealed a partnership with Cnooc Ltd. last year to explore the South China Sea.

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