Sinopec to buy Angola oil field stake for $2.46 billion

16:33, March 29, 2010      

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Asia's top oil refiner, Sinopec, will buy a stake in an Angolan oil field for 16.77 billion yuan ($2.46 billion) to boost the company's crude oil production, Sinopec announced March 29.

Sinopec's Hong Kong unit, Sinpoec (Hong Kong) International Co. Ltd. (SHI) will buy 55 percent of Sonangol Sinopec International Ltd. (SSI) equities from its parent China Petrochemical Corp. Then Sinopec will acquire SSI's 50 percent stake in deepwater assets in Angola's No.18 oil block.

It's the company's first as well as best acquisition of overseas upstream assets, which will enhance the company's current production and distribution. With the Angola deal, Sinopec's remaining proven reserves of crude oil will increase 3.6 percent and its daily crude oil production will rise 8.8 percent, equal to an increase of 72,000 barrels per day.

As China's second oil and gas producer after PetroChina, Sinopec has continuously increased its acquisition and exploitation of upstream assets in recent years. The stake in Angola will be its best overseas asset to date.

Located in Angola's deepwater area, the fastest growing area for oil reserves and production, Angola No.18 owns about 0.1 billion barrels of proven reserves of crude oil.

Sinopec also proposed to issue convertible bonds that could total up to 23 billion yuan to fund an ethylene project in Wuhan, and for some of its refining and pipeline projects in Anqing, Shijiazhuang, Yulin and Rizhao.

Source: Global Times 
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