Sinopec to grow reserves via Nigerian acquisition

Sinopec (SNP.NYSE, 600028.SH, 0386.HKG) has signed a preliminary agreement to acquire stakes in Nigerian onshore oil blocks for approximately US$2.4 billion from French explorer Total (TOT.NYSE), Bloomberg reported, citing two unnamed sources familiar with the deal. The state-backed company, Asia’s largest refiner, has also eyed acquisitions of French oil company Etablissements Maurel et Prom’s (MAU.EPA) fields in Gabon. Sinopec’s parent company China Petrochemical (1314.HKG) aims to grow its overseas crude oil output from 23 million tons in 2011 to 50 million metric tons by 2015, it said in January. This came after Sinopec’s crude reserves had fallen from 3.3 billion barrels in 2007 to 2.8 billion barrels at the end of last year. The supply could run out in nine years if production is maintained at 2011 levels, Bloomberg calculated.