Energy

Sinopec, Repsol in talks for more joint ventures

By John Duce (China Daily)
Updated: 2011-01-06 13:31

HONG KONG - China Petrochemical Corp and Repsol YPF SA, Spain's largest oil company, are in talks to pursue joint ventures around the world after the Chinese refiner invested $7.1 billion in a Repsol unit in Latin America last year.

The companies agreed to set up working groups to examine new business opportunities following the acquisition of a 40 percent stake in Repsol's Brazilian unit by Sinopec Group, as China Petrochemical is known, the Madrid-based oil producer said in a statement on Tuesday.

"There are significant synergies between Repsol and Sinopec, and the relationship between both companies is ideal to continue reinforcing our alliance worldwide in new business areas," Repsol Chairman Antonio Brufau said in the statement, without elaborating.

Huang Wensheng, the Beijing-based spokesman for Sinopec Group, couldn't be immediately reached by telephone for comment on Wednesday.

Related readings:  Sinopec northwest field crude output up 6% in 2010  Sinopec expects 2010 sales to increase to $296 billion  China approves Sinopec's purchase of Colombian blocks  Sinopec starts natural gas exploration in Sichuan

State-controlled Sinopec Group's investment in the Repsol division was China's largest overseas oil deal since the refiner acquired Addax Petroleum Corp for C$8.3 billion ($8.3 billion) in 2009 to gain reserves in Iraq's Kurdistan and West Africa. The two companies may bid jointly or separately in future auctions of oilfields in Brazil, Repsol said in December.

The agreement between Sinopec Group and Repsol to discuss more business ventures came during talks between Brufau and Sinopec Chairman Su Shulin in Madrid, according to Tuesday's statement. The discussions coincided with an official visit to Spain by Chinese Vice-Premier Li Keqiang to bolster ties between the two countries. "We are committed to making every effort to consolidate and develop this relationship in the future," Sinopec's Su was quoted as saying in the statement.

Repsol has operations in more than 30 countries, including Argentina, Bolivia, Mexico and Colombia, according to a statement on the company's website.

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