China’s state-owned oil major, Sinopec, has acquired 33 percent of the Egyptian oil and gas unit of US-based Apache Corp for $3.1 billion.
This shows that China’s appetite for Africa’s commodities continues even though there is slackening economic growth at home.
This is also happening despite Egypt’s political problems, which have left many people killed and scores injured as supporters of the deposed president Muhamed Morsi clash with new government forces.
According to the Wall Street Journal (WSJ), Sinopec has been making certain that it acquires minority shareholding in foreign oil firms rather than buying stakes in Western oil giants. This, it thought, would increase the supply of gas and oil in China.
Chinese firms are working hard to expand their overseas assets to meet the country’s increasing energy utilisation.
“Through this partnership, Sinopec is able to enter the upstream oil and gas sector of Egypt for the first time and expand its international upstream portfolio,” the company said in a statement.
Sinopec on Friday said the transaction will see its production surge by 130 000 oil barrels a day, or 6.5 million barrels a year.
It is expected that the transaction will be finalised in the fourth quarter of this year and it is also subject to regulatory approvals.
Source: Ventures Africa