BP rejects Sinopec's offer to buy its assets

BP has rejected China's top oil refiner China Petroleum and Chemical Corp's (Sinopec) offer to buy some of the assets that the British oil giant has planned to sell to raise finances to cover costs arising from the Gulf of Mexico oil spill.

Without naming the assets that Beijing-based state-run company attempted to buy from BP, Sinopec's senior vice president Zhang Jianhua said in an interview in Shanghai yesterday, "We've talked to BP on some good assets, but they won't sell… We aren't in any talks with BP right now."

At its 27 July board meeting, BP, Europe's largest oil producer, had announced its plans to decided sell off assets worth $30 billion in the next 18 months to cover the costs of the Gulf of Mexico oil spill. (See: Robert Dudley replaces Tony Hayward as BP chief executive) 

Although BP has not revealed which assets it is likely to divest, accordingg to UK media reports the London-based oil company may hive off several small non-core assets including stakes in three production ventures in Venezuela, Colombia's two biggest oil fields and a gas field and pipeline in Vietnam.

ONGC Videsh Ltd the overseas arm of Oil and Natural Gas Corporation is interested in acquiring BP's stake in the Nam Con Son gas project in Vietnam. (See: India looking to buy BP's assets in Vietnam JV)

The Sunday Times had said that BP would sell its 60-per cent stake in Argentina's second-largest oil producer, Pan American Energy. Pan-American produces about 100,000 barrels of crude oil a day and 450 cubic meters of gas.