SINOPEC PAYS $1.2B
China Petroleum & Chemical Corp. (386), Asia's biggest refiner, agreed to pay Russia's OAO Lukoil about $1.2 billion to take control of assets in Kazakhstan.
The Beijing-based company known as Sinopec agreed to buy Lukoil's 50 percent of Caspian Investment Resources Ltd., which holds stakes in four projects in the central Asian nation. Sinopec and its parent already own the other half of the company via a joint venture.
The deal will give Sinopec additional hydrocarbon production of 10.2 million barrels of oil equivalent, as of 2013, Russia's second-largest oil producer said in a statement. The purchase highlights the push by China, the world's biggest energy consumer, to secure diverse energy assets abroad to meet rising demand at home.
"Most Caspian Investment assets are in a period of falling production, while the costs have been growing quickly," Ildar Davletshin, an oil and gas analyst at Renaissance Capital in Moscow, said by e-mail. "It was good for Lukoil to sell the stake to its partner Sinopec, which could offer a more attractive price being a strategic investor."
State-owned Sinopec said in March last year it would form a $3 billion joint venture with its parent China Petrochemical Corp. to replace dwindling overseas reserves with oil and gas assets in Kazakhstan, Colombia and Russia.
"While there has been speculation on reduced interest in M&A by Chinese oil majors given a more uncertain commodity price outlook, this acquisition confirms China's interest in acquiring producing assets at attractive valuation levels," Neil Beveridge, a Hong Kong-based analyst at Sanford C. Bernstein & Co., said by phone.
Sinopec's Beijing-based spokesman could not be reached for comment.
The deal is subject to regulatory approval by Kazakh authorities and is expected to be completed before the end of the year, Lukoil said.
Lukoil sold 50 percent of Caspian Investments to a company controlled by India's Lakshmi Mittal and Oil & Natural Gas Corp. for $980 million in 2007. The Chinese joint venture then bought that stake in 2010, after Lukoil waived its right of first refusal.
|February, 16, 23:45:00|
|February, 16, 23:40:00|
|February, 16, 23:35:00|
|February, 16, 23:30:00|
|February, 16, 23:25:00|
|February, 16, 23:20:00|
AOG - The Dubai Electricity & Water Authority (DEWA) is to invest around $22bn on new energy projects across the next five years, with the renewables sector accounting for an increasing share of electricity generation, according to CEO Saeed Mohammed Al Tayer.
TRANSCANADA - TransCanada Corporation (TSX:TRP) (NYSE:TRP) (TransCanada or the Company) announced net income attributable to common shares for fourth quarter 2017 of $861 million or $0.98 per share compared to a net loss of $358 million or $0.43 per share for the same period in 2016. For the year ended December 31, 2017, net income attributable to common shares was $3.0 billion or $3.44 per share compared to net income of $124 million or $0.16 per share in 2016.
ROSATOM - February 13, 2018, Moscow. – ROSATOM and the Ministry of Scientific Research and Technological Innovations of the Republic of Congo today signed a Memorandum of Understanding on cooperation in the field of peaceful uses of atomic energy.
FRB - Industrial production edged down 0.1 percent in January following four consecutive monthly increases. Manufacturing production was unchanged in January. Mining output fell 1.0 percent, with all of its major component industries recording declines, while the index for utilities moved up 0.6 percent. At 107.2 percent of its 2012 average, total industrial production was 3.7 percent higher in January than it was a year earlier. Capacity utilization for the industrial sector fell 0.2 percentage point in January to 77.5 percent, a rate that is 2.3 percentage points below its long-run (1972–2017) average.