OIL BUSINESSES
Sinopec tipped to sell assets in Nigeria and Gabon
Hong Kong — China’s Sinopec Group had hired BNP Paribas to sell its oil business in Nigeria and Gabon, three people with knowledge of the matter said, as the state-owned oil giant pares back its presence in Africa. Sinopec and other oil groups, including China National Petroleum Corporation and China National Offshore Oil Corporation, made large acquisitions in 2009-13 with the help of low-cost loans from Chinese state-owned banks. The hunt for overseas assets was intended to bulk up their energy reserves and meet future demand from China. But oil prices fell to about $27 a barrel in 2016 from more than $100 in 2014, making some of these investments unprofitable. Benchmark Brent crude oil is now trading at more than $60. Militants have recently attacked oil and gas facilities in Nigeria, further discouraging Sinopec. In addition, China’s economy, which was growing strongly when the company expanded, has slowed. "Sinopec is trying to sever ties," one of the people told Reuters. "It h...
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