Sinopec acquires oil stake in Angola from parent company

29 March 2010

Hong Kong, China, 29 March – Sinopec (China Petroleum & Chemical Corp) announced it had agreed to acquire deepwater oil assets in Angola, paying US$2.46 billion for a 55 percent stake in Sonangol Sinopec Internacional.

The deal was announced in December 2009 by newspaper China Business News noting that this would be the start of passing assets from the Sinopec group to listed company Sinopec, which would be followed by the transfer of oil assets in Nigeria.

This acquisition from parent company China Petrochemical Corp is the first acquisition of foreign assets, which will make the company’s proven reserves rise 3.6 percent or by 102 million barrels of oil.

China Sonangol International Holding Ltd. Controls the remaining 45 percent of Sonangol Sinopec International, which has a 50 percent stake in Block 18, in Angola’s deepwaters.

To date, Sinopec, the biggest refiner in Asia by capacity, has based its business model on importing 70 percent of the oil it processes in its refineries which, in the recent past, led the company to high losses as it was unable to pass on the high cost of crude oil to its customers.

In a separate statement, Sinopec said Sunday that in 2009 it had posted net profit of 61.8 billion yuan (US$9.05 billion), which was more than double the 28.5 billion yuan posted the previous year. (macauhub)