Petroleum Giants to Buy One Tenth of Sinopec SharesOn September 13, the three petroleum giants of the world, Exxon Mobil, Shell and BP Amoco announced to buy 10% shares from China Petroleum and Chemical (Group) Corporation, which would make it more convenient for them to enter China, the second largest petroleum market in Asia.Sinopec Corp., China¡¯s largest petroleum refinery, holds 20% shares of China Petroleum and Chemical (Group) Corporation, while the three petroleum giants would then get half of them. Exxon Mobil asserted that after the purchase to be carried out the next month, the productivity would be doubled in one of the petroleum refinery of Sinopec that cooperated with Mobil, and 500 new gas stations would be set up in China. The oncoming action of the overseas petroleum companies intends to get large profits from petroleum retails, and also to increase the opportunities of establishing branches in China, which is the most convenient way to enter China's market according to Hong Kong analysis. Since the oil price rose, shares of energy sources are predicted to be bullish, thereby, the three petroleum giants decided to invest in, from which China will benefit to some degree. Reportedly, due to the recovery of economy, China¡¯s domestic needs on petroleum increased 10% yearly, and the incomes of refineries also increased continuously. |
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