Sinopec to acquire Occidental Petroleum’s Argentinean subsidiary for $2.45-bn
10 Dec 2010
China's top oil refiner China Petroleum and Chemical Corp's (Sinopec), today said that it is acquiring the Argentinean subsidiary of the fourth-largest US oil and gas company Occidental Petroleum Corp, for $2.45 billion.
Beijing-based Sinopec said in a statement that it is acquiring all the assets of Occidental Argentina, which includes Occidental Argentina Exploration & Production Inc and certain affiliates.
The acquisition comes after Sinopec last month teamed up with Bridas Energy Holdings to acquire British oil giant BP's 60 per cent stake in Argentina's second-largest oil producer, Pan American Energy, for $7.06 billion.
The purchase of BP's stake in Pan American Energy came after London-based oil company had in July 2010 rejected Sinopec's offer, which was confirmed by Sinopec's senior vice president Zhang Jianhua, who said in an interview in Shanghai at that time, "We've talked to BP on some good assets, but they won't sell… We aren't in any talks with BP right now." (See: BP rejects Sinopec's offer to buy its assets)
Occidental Argentina holds interest in 23 production and exploration concessions in Santa Cruz, Mendoza and Chubut provinces in Argentina having combined proven and probable reserves of 393 million barrels of oil.
The fields produced over 51,000 barrels of oil per day last year.
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