Tuesday, May 18, 2010

Sinopec Shareholders OK Plan To Buy Parent's Africa Oil Assets. Anogla Block 18.


HONG KONG (Dow Jones)--China Petroleum & Chemical Corp. (SNP), or Sinopec, said Tuesday its shareholders approved its plan to buy a 55% stake in Sonangol Sinopec International Ltd. from its parent, its first acquisition of overseas upstream assets.

Sinopec said in March it agreed to buy the stake in Sonangol Sinopec International Ltd. from China Petrochemical Corp. for US$2.46 billion.

Sonangol Sinopec International owns a 50% interest in Angola Block 18, a deep-water oil asset in Angola. Block 18 is divided into east and west zones, with an average water depth of 1,500 meters. The East Zone has been in operation since October 2007, with daily production capacity of 240,000 barrels. The West Zone is in the development phase.

With the completion of the deal, Sinopec's proven reserves of crude oil will increase by 3.6%, or 102 million barrels. Its daily crude oil production will increase by 8.8%, or 72,520 barrels, the company said earlier.

-By Xu Wan and Yvonne Lee, Dow Jones Newswires; 852-2802-7002; xu.wan@dowjones.com

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