Sinopec Group, the largest shareholder of Sinopec Corp., is a giant petroleum and petrochemical group incorporated by the State in 1998 based on the former China Petrochemical Corporation. Funded by the State, it is a State authorized investment arm and State-owned controlling company.

Thursday, May 20, 2010

Sinopec to buy stake in Sonangol Sinopec International from parent

May 20th, 2010 - China Petroleum & Chemical Corp, which is Asia's largest oil refiner and is also known as Sinopec, on Tuesday said that it has secured approval from shareholders to acquire a 55% stake in Sonangol Sinopec International from its parent, China Petrochemical Corp, sources reported.

The deal will be Sinopec's first purchase of overseas upstream assets. In March, Sinopec said that it agreed to buy the stake for US$2.46 billion. Sonangol Sinopec International owns a 50% interest in Angolan deep water oil asset Block 18.

The block has two sections, an east section and a west section, and an average water depth of 1,500 meters. The east section started operation in October 2007 and has a production output of 240,000 barrels per day, while the west section is still under development.

Upon the completion of the deal, Sinopec's proven oil reserves will increase by 3.6%, or 102 million barrels, and its daily crude oil output will grow by 8.8%, or 72,520 barrels, the firm said earlier. - China Knowledge

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