Sinopec to Shuffle Assets (SNP, DVN, CEO)
China Petroleum & Chemical Corp., known popularly as Sinopec (NYSE: SNP), has said that it will acquire all the overseas oil & gas assets of parent company China Petrochemical Corp., better known as Sinopec Group. Sinopec, which is China’s largest…
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China Petroleum & Chemical Corp., known popularly as Sinopec (NYSE: SNP), has said that it will acquire all the overseas oil & gas assets of parent company China Petrochemical Corp., better known as Sinopec Group. Sinopec, which is China’s largest refining company, plans to become an integrated oil company through the acquisitions.
Even China’s largest refining company understands that the money in oil & gas is at the upstream end, not the downstream end of the value chain. Sinopec Group owns about 75% of Sinopec, as well as about $14 billion in overseas assets. Sinopec Group paid $2.5 billion to Devon Energy Corp. (NYSE: DVN) in 2010 for a stake in five of Devon’s fields.
The move should not be too surprising. Sinopec’s CEO, Fu Chengyu, was head of Cnooc Ltd. (NYSE: CEO), which aggressively sought overseas assets during his term.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
