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Sinopec takes share in Apache's Egyptian business

Updated: 2013-11-15 16:44
( Xinhua)

Sinopec takes share in Apache's Egyptian business

File picture shows a Chinese New Year lantern installation on display outside a Sinopec gas station in Hong Kong.Sinopec Group's deal with Apache Corp will add daily output of about 130,000 barrels of oil for Sinopec. Chinese companies have completed 83 overseas oil and gas purchases worth $100.7 billion in the past five years.[Photo/Agencies]

BEIJING -- Sinopec Group and Apache Corporation announced on Friday that Sinopec has acquired one-third share of Apache's Egyptian oil and gas business for $3.1 billion.

The transaction is Sinopec's first foray into Egypt and will build on the group's experience and capabilities overseas, according to a group statement.

Sinopec is expected to increase its production by 130,000 barrels of oil equivalent per day (equivalent to 6.5 million tons of oil equivalent per year) during the peak season as a result.

Sinopec and Apache announced a global strategic partnership in August, with Sinopec buying this share in Apache's Egyptian business as the first step.

Apache is an independent US upstream oil and gas company, with 24 contractual blocks in Egypt, mainly located in Egypt's West Desert.

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