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China: Oil giant Sinopec buys 75% of Chevron’s South African assets

By  |  March 23, 2017

Hong Kong-listed China Petroleum & Chemical, a subsidiary of Chinese state-owned oil, gas and petrochemical producer Sinopec, has agreed to pay $900m for 75% of Chevron’s South African assets, the company said on Wednesday.

This is Sinopec’s first investment in an oil refinery in Africa although it has been active on the continent for more than 20 years, mainly in oil and gas exploration.

Last year, Chevron had stated its intention to unload 75% interests in its South Africa assets as part of its three-year divestment goals announced in 2014. In Oct 2016, many energy firms like France’s integrated oil and gas major TOTAL, Switzerland- based diversified resource company Glencore and Russian oil trader Gunvor Group had put in bids to snap up stakes in Chevron’s South Africa business. However, Sinopec was selected due to the better terms and conditions it offered.

Full Content: Wall Street Journal

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