Sinopec to acquire overseas assets of parent company

China Petroleum & Chemical Corporation (Sinopec) announced that it plans to acquire the overseas oil and gas assets of its parent company, China Petroleum Corporation (Sinopec Group) so as to increase its hydrocarbon-reserve base. The acquisition will also help Sinopec move a step closer to achieve its goal of becoming a fully integrated oil major. Sinopec is now undertaking rapid foreign expansion under the leadership of Fu Chengyu and the acquisitions may lead to more restructuring. Analysts say that the move would be favorable for the company’s investment returns. Sinopec is Asia’s largest oil refiner and the company is positioning itself to become the sole platform within the Sinopec family that will undertake international exploration and production of oil and gas, as well as refining, chemicals output and distribution of petroleum products. In 2010, Sinopec began acquiring its parent company’s overseas assets, when it bought a 50% stake in Block 18 of Angola, a deep-water-oil asset. (March 16, 2012)