HONG KONG, March 24 (Reuters) - China Petroleum and Chemical Corp (Sinopec Corp) said on Sunday it had agreed to set up a joint venture with its parent company to buy $3 billion worth of oil and gas assets held by the latter.
The 50/50 venture between a wholly-owned subsidiary of Sinopec Corp and Sinopec Corp’s parent China Petrochemical Corp (Sinopec Group) will buy assets with 310 million barrels in proven and probable reserves, it said in a statement.
The acquisition would boost Sinopec Corp’s proven reserves by 9.1 percent to 3.1 billion barrels of oil equivalent (boe), and its annual crude production would rise 11.2 percent to 365 million barrels, the statement said.
Sinopec Corp will contribute $1.5 billion, using internal funds and loans and will also take management control of the venture, it said.
Sinopec Corp, Asia’s largest refiner, said a year ago that it was considering buying more overseas upstream assets from its parent to boost oil and gas production and counter mounting losses from selling gasoline and diesel at state-controlled prices. (Reporting by Charlie Zhu. Editing by Jane Merriman)