Sinopec plans to buy $3 billion worth of oil, gas assets via JV with parent
BY YVONNE LEE
HONG KONG -- Sinopec Corp said it agreed to buy $3 billion worth of overseas oil and gas assets held by its parent company Sinopec Group, through an international joint venture(JV) between them.
Sinopec Corp agreed to establish a JV company, namely Sinopec International Petroleum E&P Hongkong Overseas, with Sinopec Group. The new JV is planning to buy Sinopec Group's overseas upstream assets in major oil and gas producing countries including Kazakhstan, Colombia and Russia, the statement said.
The acquisitions are aimed at putting Sinopec on par with Exxon Mobil, Chevron and Shell.
Spearheading the charge is Sinopec Chairman Fu Chengyu, who led a failed bid to buy Unocal for $18.5 billion in 2005 while at the helm of Cnooc.
Mr. Fu is on a mission to transform Sinopec into the group's primary international arm. He said last year that Sinopec, which has few overseas oil and gas assets, planned to acquire its parent's overseas upstream assets, partly to limit the damage that China's fuel price controls have on the company's bottom line.
Sinopec Group holds a 73.86% stake in Sinopec Corp. Since 2010, the group has invested $34 billion in oil and gas deals in the United Kingdom, United States, Canada, Brazil, Argentina and Australia, according to data provider Dealogic.
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