Sinopec JV eyes assets worth US$3b
By Richard Fu |
March 26, 2013, Tuesday
|
Print Edition
Print Edition
SINOPEC Corp, Asia's largest refiner, agreed to form a 50-50 joint venture with its parent to acquire US$3 billion worth of overseas oil and gas assets from the latter to strengthen reserves and production.
Chairman Fu Chengyu is leading the asset-injection drive, and the transaction will boost its profitability and facilitate its objective of becoming a more global oil company with significant oil and gas assets, according to a Sunday statement.
The joint venture will boost Sinopec's production by 4.2 percent and reserves by 3.2 percent, according to Sanford C. Bernstein analysts.
Three upstream assets from Kazakhstan, Russia and Columbia will initially be injected into the joint venture.
"Although the deal size is relatively small compared to Sinopec's market cap of US$98 billion, we believe this upstream asset acquisition is one of many to come in the months ahead, and will certainly improve the overall profitability of the firm amid prevailing US$100-plus oil prices," Mirae Asset Securities analyst Gordon Kwan said.
Sinopec's parent, China Petrochemical Corp, has spent nearly US$40 billion in overseas oil and gas deals since 2010, gaining access to fields in Argentina, Russia, Canada, Iraq and West Africa.
Sinopec's only current overseas upstream asset is a stake in a deepwater oil field offshore Angola, which was acquired from its parent in 2010.
Chairman Fu Chengyu is leading the asset-injection drive, and the transaction will boost its profitability and facilitate its objective of becoming a more global oil company with significant oil and gas assets, according to a Sunday statement.
The joint venture will boost Sinopec's production by 4.2 percent and reserves by 3.2 percent, according to Sanford C. Bernstein analysts.
Three upstream assets from Kazakhstan, Russia and Columbia will initially be injected into the joint venture.
"Although the deal size is relatively small compared to Sinopec's market cap of US$98 billion, we believe this upstream asset acquisition is one of many to come in the months ahead, and will certainly improve the overall profitability of the firm amid prevailing US$100-plus oil prices," Mirae Asset Securities analyst Gordon Kwan said.
Sinopec's parent, China Petrochemical Corp, has spent nearly US$40 billion in overseas oil and gas deals since 2010, gaining access to fields in Argentina, Russia, Canada, Iraq and West Africa.
Sinopec's only current overseas upstream asset is a stake in a deepwater oil field offshore Angola, which was acquired from its parent in 2010.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
