Sinopec to pay $1.2 bn for Lukoil stake in Kazak assets
BEIJING (Bloomberg) -- China Petroleum & Chemical Corp. agreed to pay Russia’s OAO Lukoil about $1.2 bn to take control of assets in Kazakhstan. The Beijing-based company known as Sinopec agreed to buy Lukoil’s 50% of Caspian Investment Resources Ltd., which holds stakes in four projects in the central Asian nation. Sinopec and its parent already own the other half of the company via a JV.
The deal will give Sinopec additional hydrocarbon production of 10.2 MMboe, as of 2013, Lukoil said in a statement. The purchase highlights the push by China, the world’s biggest energy consumer, to secure diverse energy assets abroad to meet rising demand at home.
Sinopec’s Beijing-based spokesman could not be reached for comment.
Sinopec said in March last year it would form a $3 bn JV with its parent China Petrochemical Corp. to replace dwindling overseas reserves with oil and gas assets in Kazakhstan, Colombia and Russia.
The deal is subject to regulatory approval by Kazak authorities and is expected to be completed before the end of the year, Lukoil said.