SINOPEC TO BUY OVERSEAS OIL, GAS ASSETS FROM CHINESE PARENT

Asia's biggest refiner China Petroleum & Chemical Corp (Sinopec)(SSE:600028) will buy more overseas gas and oil assets from its parent, Shanghai Securities News reported Tuesday, citing Sinopec chairman Su Shulin.
Source:tradingmarkets.com     Time:30 Mar 2010
Asia's biggest refiner China Petroleum & Chemical Corp (Sinopec)(SSE:600028) will buy more overseas gas and oil assets from its parent, Shanghai Securities News reported Tuesday, citing Sinopec chairman Su Shulin.

Sinopec announced its first acquisition of a 50 per cent stake in an Angolan field from its parent, China Petrochemical Corp. The Angolan block is the best overseas asset held by the parent company, Su said. The project earned net profits of $512.5 million in 2009.

"If conditions are right, Sinopec will continue its acquisition and the parent company may inject Addax assets to Sinopec," Su said. Sinopec may expand its overseas business by itself in the future, Su stressed.

China Petrochemical Corp purchased Calgary-based Addax Petroleum Corp for C$8.3 billion (US$7.8 billion) last year to add oil reserves as domestic fuel demand rises. It was the largest overseas oil and gas assets acquisition by a Chinese company.

Su forecasted higher international crude oil prices in 2010, which may bring pressures to refiners.

The pricing adjustment period of 22 working days of the new oil pricing system was quite long, which may incur speculation and oil hoard, according to Su.
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