UPDATE 1-Sinopec eyes overseas buys, refining turnaround

* Seeks opportunities in Africa, South America

* Eyeing injections from parent firm

* Optimistic about refining business turnaround

(Adds details, executive quotes)

By Sui-Lee Wee and Joseph Chaney

HONG KONG, March 30 (Reuters) - Top Asian oil refiner Sinopec Corp (0386.HK) is eyeing overseas projects for its exploration and production business, as the sharp fall in crude oil prices spurs bargain-hunting among oil giants.

Sinopec (600028.SS), who has aggressively pursued acquisitions beyond China, is focusing on opportunities in Africa and South America in the near term, Chairman Su Shulin told reporters at a media briefing on Monday.

"The current oil prices are lingering at a low level," Su said. "This creates more opportunities for upstream transactions. Sinopec is now more prepared for overseas acquisitions in the E&P segment."

He declined to specify which companies Sinopec (SNP.N), China's No.2 oil and gas producer after PetroChina (0857.HK) (PTR.N) (601857.SS), is targeting.

Sinopec, the world's second-largest refiner after Exxon Mobil (XOM.N), also has permission to buy assets from Sinopec Group, its parent company, but Su said he did not have a detailed timetable for the transactions.

REFINING BOOST?

For most of last year, state-owned Sinopec was forced to take losses at its refining operations as it had to supply the world's second-largest oil consuming nation with fuel at low prices set by a government wary of inflationary pressures, even when crude oil prices hit a record $147 per barrel in July.

Oil CLc1 prices -- reeling from the global financial crisis -- have since plummeted and were hovering below $51 a barrel on Monday by 1045 GMT.

Like international rivals Exxon Mobil Corp (XOM.N) and Chevron Corp. (CVX.N), Sinopec's refineries had a better-than-expected performance after oil prices declined sharply in the last quarter of 2008, cutting its input costs and bolstering margins.

Analysts say Sinopec should see a turnaround this year, especially after Beijing moved last week to hike fuel prices, guaranteeing higher and more stable profit margins for refiners.

Su said the refining segment will now be a pillar contributor to the firm's profits, adding that Sinopec has seen a rise in sales in the first quarter from its refined products and chemicals segments.

Sinopec said on Sunday its net profit for the first quarter would rise by more than 50 percent compared to the same period a year ago, boosted by improved refining economics because of the sharp fall in crude oil prices. [ID:nHKF080079].

After March 25, Sinopec's sales in refined products amounted to 339,000 tonnes, up from 317,000 tonnes in the first three weeks of March, Su said. In February, the firm sold 293,000 tonnes of refined products.

"The refining business will not make a loss this year," Su said, adding that the performance will depend on crude prices.

"The oil price will not stay at a very low level for a long time and will likely pick up in future," he said, adding that crude could reach $80 a barrel after this year.

Sinopec's sales from its chemicals division will grow in 2009, driven by strong demand and scarce supply, Su said.

China needs 21.3 million tonnes of chemicals to satisfy demand at home this year, but domestic producers can only churn out 10.5 million tonnes, Su said, adding that the firm plans to expand sales to its domestic market to meet the shortfall.

Sinopec posted a near doubling in quarterly profit on Sunday thanks to state handouts and a steep decline in crude oil prices that restored refining profits, but it warned of a challenging 2009 as a result of the global economic downturn. [ID:nPEK319906].

For a graphic on the company's Q4 profits, click: here

(Editing by Simon Jessop)