Mar. 30 – The China Petroleum and Chemical Corp., or Sinopec, announced its first overseas asset acquisition on Monday, agreeing to acquire deep-water oil assets in Angola through the purchase of a 55 percent stake in Sonangol Sinopec International Ltd for US$2.46 billion.

As Asia’s largest oil refiner, Sinopec is actively seeking overseas investments in oil and gas resources to meet China’s increasing energy demands. The deal is Sinopec’s first overseas asset acquisition, aiming to “further expand Sinopec’s upstream business, and Sinopec will have access to overseas oil and natural gas markets,” according to chairman of the board Su Shulin.

The acquisition will be paid by capital and bank loans, through which will increase the company’s proven reserves of crude oil by 3.6 percent, or 102 million barrels. Daily crude-oil production will rise 8.8 percent, or 72,520 barrels.

China’s drive for resources in Africa has met with Western criticism, which Beijing rejects. “China’s oil imports from Africa accounted for only 13 percent of Africa’s total exports, while Europe and the United States took more than 30 percent,” Chinese Foreign Minister Yang Jiechi said at a press conference in Beijing last month.

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