China''s Sinopec Buys Stake in Angola Project
March 29, 2010
Asia''s top oil refiner, Sinopec, will buy a stake in upstream assets in Angola for $2.46 billion reports Reuters. Sinopec, China''s No.2 oil and gas producer after PetroChina, said its unit in Hong Kong would buy 55 percent of Sonangol Sinopec International Ltd, which has deepwater assets in Angola, from its parent China Petrochemical Corp, its first acquisition of overseas upstream assets. Analysts say upstream acquisitions by China''s biggest refiner are necessary because it will continue to struggle in the first half of 2010, as Beijing procrastinates on raising state-set fuel prices for fear of stoking inflation. Sinopec forecast higher crude prices in 2010 and warned that more refining capacity in China could stiffen competition. "Following the recovery in the global economy, international oil market demand has recovered. It is expected that in 2010, the level of crude prices may be higher than in 2009," Sinopec said in a statement to the Shanghai stock exchange. Sinopec said that with new capacity from refining and petrochemical businesses coming on stream, market competition would remain keen. In 2010, Sinopec is targeting domestic crude oil production of 44.52 million tons. It aims to process crude oil of 203 million tons and to have total domestic sales of refined products of 129 million tons.