Sinopec, Apache Strike $3.1 Billion Egypt Oil Deal

Sinopec, Apache Strike $3.1 Billion Egypt Oil Deal

From BBC

China Petrochemical Corporation, also known as Sinopec, has agreed to buy a 33% stake in the Egyptian oil and gas business of US firm Apache Corporation. Sinopec will pay Apache $3.1bn (£2bn) in cash for the stake.

The deal is the latest in a series of similar moves by Chinese oil firms as they look to secure energy supplies to meet growing domestic demand.

China is the world’s second-largest consumer of oil, behind the US, and imports are key to meeting its needs.

According to the firm’s website, Apache’s Egypt operations produced an average of 100,000 barrels of oil and 354 million cubic feet of natural gas per day in 2012.

“Sinopec is an ideal partner for us, and we look forward to the growth and value generation ahead for both companies through the expansion of our collaboration to other projects,” Steven Farris, chief executive of Apache, said in a statement.

Read more at bbc.co.uk