Sinopec to acquire upstream assets in Angola for $2.46 billion

Asia's largest crude refiner Sinopec, yesterday said that it would acquire a stake in Angola's upstream assets for $2.46 billion, its first overseas oil-asset acquisition.

Beijing-based Sinopec, China's biggest oil and gas producer after PetroChina, is acquiring a 55-per cent stake in Sonangol Sinopec International's (SSI) deep-water oil assets in Angola from its parent China Petrochemical Corporation for $2.46 billion.

With the completion of this deal, Sinopec's remaining proven reserves of crude oil will be increased by 102 million barrels, up 3.6 per cent and its daily crude oil production will increase by 72,520 bbl, up 8.8 per cent, said Sinopec in a statement.

This acquisition, of one of its parent's highest quality assets, marks the entry of Sinopec into the overseas upstream exploration and production business, and the crude refiner said that it will look out to acquire new oil and gas assets in the future.

Listed on the Hong Kong, New York, London and Shanghai stock exchanges, Sinopec said that it will fund the acquisition through internal resources and bank loans.

SSI owns a 50-per cent participation interest in Angola Block 18, which is divided into East and West zone, with the East zone being in operation since October 2007, having daily production capacity of 240 thousand barrels.