Sinopec Group's deal with Apache Corp will add daily output of about 130,000 barrels of oil for Sinopec. Chinese companies have completed 83 overseas oil and gas purchases worth $100.7 billion in the past five years. [provided to China Daily]. The operations that are being acquired, located in the Western Desert and away from the centers of political unrest in Egypt, will add daily output of about 130,000 barrels of oil for Sinopec Group, the company said in a statement.
That's equivalent to 9 percent of last year's daily production of 1.5 million barrels of oil equivalent, according to Bloomberg News calculations. The deal is expected to close in the fourth quarter, and it will be Sinopec's biggest such transaction since the 2010 purchase of Syncrude Canada Ltd. "Their (Sinopec's) technical expertise complements our 20 years of experience operating in Egypt and creates an alliance that will continue to explore and deliver the tremendous hydrocarbon resources in the Western Desert," Steven Farris, chairman and chief executive officer of Apache, said in a statement on the company's website. Wei Fujun, a spokesman at Sinopec International Petroleum Exploration & Production Corp, the unit making the purchase, told Bloomberg that Sinopec is aware of the political uncertainties in Egypt and is focused on long-term development in the region. Wei termed the price of $3.1 billion "very reasonable". The deal, which coincides with a potential move by PetroChina Co into Iraq, is viewed by some analysts as a sign of China's increasing investment in the region as it secures energy resources. Chinese companies have completed 83 overseas oil and gas purchases worth $100.7 billion in the past five years. CNOOC Ltd's $15.1 billion acquisition of Canada-based Nexen Inc early this year was China's largest overseas acquisition.
Lin Boqiang, director of the China Center for Energy Economic Research at Xiamen University, said the Egypt purchase also reflects the limited options China has when buying overseas energy assets.
"After all, Egypt is shadowed with political uncertainty. Investing at this time has left Sinopec in a quandary," Lin said.
He said the move was motivated more by Sinopec's chance to benefit, as the company plans to strengthen its upstream capacity, rather than a national, State-backed strategy.
According to Moody's Investor's service, Sinopec may adopt a more prudent approach to capital expenditure in the second half of 2013 to reduce negative free cash flow.
2 comments:
Finally some people are starting to realize that this depression is being artificially created by the central banks - especially the FED-backed ECB! The bankers are very afraid that authorities will eventually realize that the world doesn't need them to print or control our money supply! Thus, besides financial disruptions, funds are also funneled to rebel factions to create "hotspots" in various unstable areas of the world. These areas provide "playgrounds" for Western militaries and keep the generals and admirals happy that they still have jobs!
This is being done for the greater agenda of control of sovereign nations, asset buy-up, and market manipulation. When all else fails and people start to realize that this economic depression is being orchestrated by the central banks, then "beat the war drum" takes over! The bankers know that they must divert attention from themselves at any cost - even at the cost of countless lives. This scenario has occurred throughout modern history - depression or panic leading to war - most notably Napoleanic Wars, WWI, WWII, and I believe we should jail the buggers before "The Big One" breaks out with a "Pearl Harbor" type incident again!
Prima jumătate din şedinţa de la mijlocul săptămânii a indicat o uşoară scădere de intensitate comparativ cu ziua anterioară. Reculul era unul firesc după ce marţi s-a consemnat cel mai bun volum zilnic din acest an de până acum, cu 4001 contracte futures. La ora 17.00, numărul contractelor încheiate era de 1248 iar valoarea aferentă acestora de peste 16 milioane lei. Deşi mai scăzut decât în ziua anterioară la aceeaşi oră, nivelul de lichiditate era unul foarte bun, pentru numai şapte ore de tranzacţionare, indicând un interes peste medie. Acesta se datora situaţiei externe, în care criza din Siria ocupă prim-planul şi generează importante mişcări pe pieţele financiare. În acest sens, se observă în special aprecierea cotaţiei petrolului.
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