China National Offshore Oil Corp, the parent of CNOOC Ltd, said it has acquired State-owned chemicals trader China National Chemical Supply & Sales (Group) Corp.

CNOOC said the move will broaden its sales channels for downstream products, especially fertilizer.

CNOOC unit China BlueChemical Ltd, makes chemical fertilizer.

China National Chemical, which was set up in 1956, is an import, export and distribution business, with assets of 2.39 billion yuan at the end of 2006.

No financial details were provided.

CNOOC, the country's largest offshore oil and gas producer, has been stepping up expansion of its downstream operations, partly through acquisitions of State-owned chemicals companies.

(US$1 = 7.64 yuan)