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China makes first entry into Egypt's O&G sector

02nd September 2013

Chinese company to buy a one-third stake in Apache Corp’s Egypt oil and gas business for USD3.1bn

China makes first entry into Egypt's oil and gas sector
The Chinese firm are paying for 33 per cent interest in Apache Egypt, with Apache continuing to operate

Chinese oil and gas company Sinopec has made an agreement with US counterpart Apache Corp for a stake in their Egypt business for USD3.1bn, marking China's first entry into the country.

 

The Chinese firm are paying for 33 per cent interest in Apache Egypt, with Apache continuing to operate.

 

This marks China’s first entry into Egypt despite the country’s political turmoil. Houston-based Apache maintain that its Egypt operations in the western desert remain unaffected by political events, the US company said in a separate statement.

 

“This partnership will further build up Sinopec’s capability and experience in promoting overseas reserves and production,” Sinopec said in a written statement.

 

Another state owned oil company, CNOOC, made its long awaited purchase of Canadian company Nexen at the beginning of 2013, one marred by political controversy from the US government.

 

Other companies, such as CNPC, have been looking to expand their overseas portfolio to cover the rise in demand in oil and gas in the BRIC country.

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