25 Aug 2009 11:06

Sinopec Group mulls injecting Addax into its listed subsidiary

Shanghai. August 25. INTERFAX-CHINA - China Petrochemical Corp. (Sinopec Group), the country's second-largest oil company, is considering injecting the assets of the recently acquired Addax Petroleum Corp., into its listed arm, China Petroleum & Chemical Co. Ltd. (Sinopec), state media reported on Aug. 25.

Sinopec Group is trying to determine a fair price for its subsidiary, which is listed on the Shanghai and Hong Kong stock exchanges, Shanghai Securities News quoted Sinopec chairman Su Shulin, as saying on Aug. 24. There is no timetable for when the deal will be completed.

Sinopec Group announced on Aug. 18 that it had taken over the Switzerland-based independent oil company for $7.56 billion. The company has an annual crude oil production capacity of 7 million tons and is expected to boost its capacity to 10 million tons in the near future, according to Sinopec Group.

Su said that Sinopec Group might also inject some of its upstream overseas oil assets, such as those in Nigeria, Angola, Russia, Kazakhstan and Australia, into its listed arm in the future, the paper reported.