Sinopec to buy $3bn in assets from parent

China Petroleum and Chemical Corporation (known as Sinopec; SNP.NYSE, 0386.HKG, 600028.SH) agreed to purchase US$3 billion worth of oil and gas assets from its parent company to improve its profitability, Reuters reported. A wholly-owned subsidiary of Sinopec will form a 50-50 joint venture with the parent, China Petrochemical Corporation (also known as Sinopec Group), to purchase oil and gas assets that will boost the listed company’s proven reserves by 9.1% to 3.1 billion barrels of oil equivalent. The company’s annual crude production is expected to rise 11.2% to 365 million barrels, the company said. The purchase will help to offset the company’s losses from selling gasoline and diesel at government-set prices.