Sinopec Group, China’s largest petroleum producer, has agreed to pay $4.65 billion to purchase a 9 percent stake in Canada’s Syncrude Canada Ltd. from ConocoPhillips.
ConocoPhillips’ sale of its stake in the Alberta-based Syncrude, a major oil sands operator in Canada, is part of a plan to unload $10 billion in assets over the next two years to repay debt.
“This is an important step in the $10 billion divestiture program, which we announced last October,” said ConocoPhillips Chairman Jim Mulva in a statement. “The completion of this transaction demonstrates the strength of the asset base available to meet our asset sales goals.”
The Houston, Texas-based ConocoPhillips last month said that it would consider selling roughly half of its 20 percent stake in Russian energy firm Lukoil.
Most analysts say that China has overpaid for oil sands deposits that must undergo heavy treatment in refineries to generate usable gasoline.
Jim Byrne, an analyst with BMO Capital Markets in Montreal told AP that China doesn’t seem to mind the many environmental concerns surrounding extracting crude oil from oil sands, which emit more carbon dioxide than other sources of petroleum.
Last year, Sinopec bought the Calgary-based Addax Petroleum Corp. for $8.3 billion. Sinopec, officially known as China Petrochemical, is based in Beijing.
ConocoPhillips’ sale of its stake in the Alberta-based Syncrude, a major oil sands operator in Canada, is part of a plan to unload $10 billion in assets over the next two years to repay debt.
“This is an important step in the $10 billion divestiture program, which we announced last October,” said ConocoPhillips Chairman Jim Mulva in a statement. “The completion of this transaction demonstrates the strength of the asset base available to meet our asset sales goals.”
The Houston, Texas-based ConocoPhillips last month said that it would consider selling roughly half of its 20 percent stake in Russian energy firm Lukoil.
China’s Thirst in Oil
Sinopec’s purchase of Canadian oil sands properties underscores China’s appetite for fossil fuels to sustain its manufacturing sector. China has been aggressive in purchasing foreign assets over the past several years.Most analysts say that China has overpaid for oil sands deposits that must undergo heavy treatment in refineries to generate usable gasoline.
Jim Byrne, an analyst with BMO Capital Markets in Montreal told AP that China doesn’t seem to mind the many environmental concerns surrounding extracting crude oil from oil sands, which emit more carbon dioxide than other sources of petroleum.
Last year, Sinopec bought the Calgary-based Addax Petroleum Corp. for $8.3 billion. Sinopec, officially known as China Petrochemical, is based in Beijing.
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