Sinopec to buy Occidental Petroleum’s Argentina unit for $2.45bn

10 December 2010 08:59  [Source: ICIS news]

SHANGHAI (ICIS)--Sinopec has agreed to pay $2.45bn (€1.86bn) to acquire 100% of Occidental Petroleum’s oil and gas assets in Argentina, the Chinese energy major said in a statement on Friday.

Sinopec will buy - subject to approvals - Occidental Argentina's oil and gas subsidiary, Occidental Argentina Exploration & Production and certain affiliates.

Occidental Argentina holds an interest in 23 production and exploration concessions in the provinces of Santa Cruz, Mendoza and Chubut, of which 19 are currently in operation, according to the statement.

As of 31 December 2009, the concessions held gross proven plus probable reserves of 393m barrels of oil equivalent (boe). During 2009, gross production from the 22 producing concessions totalled over 51,000 boe/day, the statement said.

Sinopec is actively building an international presence in an attempt to catch the wave of globalisation and diversify its crude supply.

The transaction represents Sinopec’s initial investment in Argentina’s upstream oil and gas sector and would prove significant in cementing economic ties and boosting trade between China and Argentina, the statement said.

Oil major Occidental Petroleum engages in upstream oil and gas activities mainly in the US, Middle East and Latin America.

($1 = €0.76)

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