• 1 day U.S. On Track To Unseat Saudi Arabia As No.2 Oil Producer In the World
  • 1 day Senior Interior Dept. Official Says Florida Still On Trump’s Draft Drilling Plan
  • 2 days Schlumberger Optimistic In 2018 For Oilfield Services Businesses
  • 2 days Only 1/3 Of Oil Patch Jobs To Return To Canada After Downturn Ends
  • 2 days Statoil, YPF Finalize Joint Vaca Muerta Development Deal
  • 2 days TransCanada Boasts Long-Term Commitments For Keystone XL
  • 2 days Nigeria Files Suit Against JP Morgan Over Oil Field Sale
  • 2 days Chinese Oil Ships Found Violating UN Sanctions On North Korea
  • 2 days Oil Slick From Iranian Tanker Explosion Is Now The Size Of Paris
  • 3 days Nigeria Approves Petroleum Industry Bill After 17 Long Years
  • 3 days Venezuelan Output Drops To 28-Year Low In 2017
  • 3 days OPEC Revises Up Non-OPEC Production Estimates For 2018
  • 3 days Iraq Ready To Sign Deal With BP For Kirkuk Fields
  • 3 days Kinder Morgan Delays Trans Mountain Launch Again
  • 3 days Shell Inks Another Solar Deal
  • 4 days API Reports Seventh Large Crude Draw In Seven Weeks
  • 4 days Maduro’s Advisors Recommend Selling Petro At Steep 60% Discount
  • 4 days EIA: Shale Oil Output To Rise By 1.8 Million Bpd Through Q1 2019
  • 4 days IEA: Don’t Expect Much Oil From Arctic National Wildlife Refuge Before 2030
  • 4 days Minister Says Norway Must Prepare For Arctic Oil Race With Russia
  • 4 days Eight Years Late—UK Hinkley Point C To Be In Service By 2025
  • 4 days Sunk Iranian Oil Tanker Leave Behind Two Slicks
  • 4 days Saudi Arabia Shuns UBS, BofA As Aramco IPO Coordinators
  • 4 days WCS-WTI Spread Narrows As Exports-By-Rail Pick Up
  • 4 days Norway Grants Record 75 New Offshore Exploration Leases
  • 5 days China’s Growing Appetite For Renewables
  • 5 days Chevron To Resume Drilling In Kurdistan
  • 5 days India Boosts Oil, Gas Resource Estimate Ahead Of Bidding Round
  • 5 days India’s Reliance Boosts Export Refinery Capacity By 30%
  • 5 days Nigeria Among Worst Performers In Electricity Supply
  • 5 days ELN Attacks Another Colombian Pipeline As Ceasefire Ceases
  • 5 days Shell Buys 43.8% Stake In Silicon Ranch Solar
  • 6 days Saudis To Award Nuclear Power Contracts In December
  • 6 days Shell Approves Its First North Sea Oil Project In Six Years
  • 6 days China Unlikely To Maintain Record Oil Product Exports
  • 6 days Australia Solar Power Additions Hit Record In 2017
  • 6 days Morocco Prepares $4.6B Gas Project Tender
  • 6 days Iranian Oil Tanker Sinks After Second Explosion
  • 8 days Russia To Discuss Possible Exit From OPEC Deal
  • 8 days Iranian Oil Tanker Drifts Into Japanese Waters As Fires Rage On
Momentum Matters: It’s Time To Ride The Wave

Momentum Matters: It’s Time To Ride The Wave

Oil prices are often determined…

2018: A Breakout Year For Clean Energy

2018: A Breakout Year For Clean Energy

2018 is poised to be…

China’s Sinopec Puts $1B Argentina Oil Assets Up For Sale

Vaca

Argentina’s losses on its oil and gas assets, as well as its labor disputes, have prompted China’s Sinopec to consider selling its operations in the country.

Sinopec advisors have offered up some of its assets to about a dozen large firms from the U.S., Latin America, Europe, Africa, and Russia, Reuters reported on Monday, citing three sources familiar with the plans.

In total, there could be more than 15 potential suitors for Sinopec’s assets, according to one of Reuters’ sources. Possible buyers include Angola’s state oil firm Sonangol and two Russian energy majors, including Rosneft. Mexico’s Vista Oil & Gas is also interested, while Argentina’s holding group Corporacion America will study buying some Sinopec assets in Santa Cruz via its energy company Compania General de Combustibles (CGC), Corporacion America’s spokeswoman Carolina Barros told Reuters. 

The assets, mostly in the Santa Cruz province in southern Argentina, could be worth between US$750 million and US$1 billion, according to one of Reuters’ sources.

This price tag would be way less than the US$2.45 billion Sinopec paid back in 2010 to buy Occidental Petroleum’s assets in Argentina. The 2010 acquisition marked Sinopec’s entry into the country at a time when Chinese companies were looking to buy assets abroad to offset domestic production declines. But the oil price crash has caused Sinopec to start booking large losses on its Argentinian operations.

According to an internal company audit reported by Chinese magazine Caixin and the Financial Times in September 2016, Sinopec had incurred US$550 million in operating losses in just three years on its Argentinian assets, and at oil prices at US$60 per barrel or lower, Sinopec would lose US$2.5 billion over the projects’ lifetime.

Related: Oil Prices May Hit $60 By End Of 2017

Although Argentina’s government announced the signing of a deal with oil industry unions in Santa Cruz at the end of last month, Sinopec may find its mature assets a tough sell due to declining oil production, as well as labor and cost issues.

“It doesn’t have to be [fast], unless Sinopec is willing to lose a huge amount of money,” one of Reuters’ sources said, referring to the possible sale.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News