China’s Sinopec Buys 33% equity stake in Apache Corporation (NYSE:APA)’s Egyptian oil and gas division


Dallas, Texas 09/03/2013 (Financialstrend) – China Petrochemical, Asia’s largest oil refiner which is also named as Sinopec, has declared that it will get hold of a 33 per cent equity stake in US-based Apache Corporation (NYSE:APA)’s Egyptian oil and gas division

Sinopec will make a payment of around $3.1 billion (£2 billion, 2.3 billion) in cash to possess control over 1/3rd of Apache’s biz in the Egyptian market, where the US company’s processes fabricated an average 100,000 barrels of oil and 354m cubic feet of natural gas on a daily basis during the last year.

It is publicly owned Sinopec’s initial entry in the Egyptian oil and gas business as the Asian company seeks to swell its global biz.

Apache’s equity stake sale is part of its proposal in order to rebalance its range by selling assets. The firm requires paying down its arrears to uphold its credit scores. It proposes to make use of the income to support future capex comprising global projects.

“We are taking significant actions in order to rebalance our collection to better deliver the full prospective of our deep North America onshore resource inventory,” stated G. Steven Farris, chairman and CE of Apache.

G. Steven also said that Sinopec is a “perfect associate” for Apache and that he is in search of “the expansion and worth generation ahead for both firms via the growth of our teamwork to other projects”.

Oil and Energy division transactions

During the month of July, Apache declared that it would sell its shallow-water division in the Gulf of Mexico to PE Company Fieldwood Energy for an aggregate sum of $3.75bn.

China, which is the 2nd largest consumer of oil after the United States, has been making plans to expand its international biz via a variety of acquirements.

Sinopec decided in the month of June to purchase a 10 per cent equity stake of US’s Marathon’s Angolan oil and gas field.