China Petroleum and Chemical Corp (Sinopec; SNP.NYSE, 600028.SH, 0386.HK) has agreed to buy Occidental Petroleum’s Argentina unit for US$2.45 billion, the Wall Street Journal reported. The acquisition gives Sinopec access to additional daily production of 51,000 barrels of oil equivalent and proven and probable reserves of 393 million barrels. The deal is the latest in a string of recent Chinese investments in South American oil resources. In October, Sinopec bought a 40% interest in Repsol’s Brazilian assets for US$7.1 billion. Then two weeks ago, a joint venture involving China National Offshore Oil Corp (CNOOC; CEO.NYSE, 0883.HK) paid BP US$7.06 billion to take full control of Pan American Energy, Argentina’s second-largest oil and gas producer. Sinopec, CNOOC and China National Petroleum Corp (PetroChina; PTR.NYSE, 601857.SH, 0857.HK) have also signed six deals with Venezuela, taking total investments in that country to a planned US$40 billion.
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