By Farah Master and Alison Lui
HONG KONG Oct 13 Sinopec Group, Asia's largest
refiner, is on the prowl for more foreign oil and gas
acquisitions, chairman Fu Chengyu said on Friday, signalling the
importance for China's state-owned oil majors to secure enough
resources to satisfy growing demand by the world's largest
Fu, speaking at a conference in Hong Kong, said he could not
give a specific timeframe for future acquisitions that would
expand Sinopec's global presence but would consider
opportunities as they arise.
"When we see a good a opportunity and one that can give us
good shareholder value, we can do it. Right now we are looking
for opportunities," he told a media conference.
Earlier this week, the energy giant signed a C$2.2 billion
($2.1 billion) deal to buy Canadian oil and gas explorer
Daylight Energy Ltd . It also bought an 18 percent stake
in Chevron Corp's Indonesian deep-water project for $680
million, an official told Reuters on Tuesday.
Sinopec Group is the parent of Hong Kong-listed and
Shanghai-listed China Petroleum & Chemical Corp (Sinopec)
. The group does overseas upstream oil and
gas investment and operations via its wholly owned unit, Sinopec
International Petroleum Exploration and Production Corp (SIPC).
Analysts expect more deals in coming months because of the
deep pockets of China's energy giants coupled with shriveling
stock prices of foreign oil and gas companies.
Fu said China's implementation of a nationwide resource tax
on domestic sales of crude oil and natural gas would not have a
huge impact on the firm.
"For Sinopec the effective resources tax rate is around 3.7
percent rate. The overall impact is not big," he said.
The sales of crude oil and natural gas sales nationwide
would be subject for a tax of between 5-10 percent, China's
State Council, or cabinet, said on Monday.
Moves to increase the threshold for the windfall tax on
domestic oil and gas production was on the government's agenda.
"The government has already said it will raise the
threshold," Fu said.
A plan to revamp China's current fuel pricing scheme and a
new scheme for the country's natural gas pricing have been
submitted to the State Council, China's cabinet, for approval,
an industry source with knowledge of the situation said on
Fu said the government was looking at further reform of the
refined product prices mechanism but could not say whether there
will be any changes.
Capped domestic fuel prices have weighed on Sinopec's
refining margins in the first half of the year due to high crude
prices and the state-owned firm's inability to pass on higher
costs to customers.