Sinopec buys Tanganyika Oil in Syria for $2 billion
25 Sep 2008
Mumbai: China's state-owned oil company Sinopec Group has agreed to buy Canadian heavy oil producer Tanganyika Oil, based in Syria, for around $2 billion, Tanganyika Oil said.
Toronto and Stockholm-listed Tanganyika Oil said its board had recommended Sinopec's bid of Canadian $31.50 for each of its 65.615 million shares, representing a substantial premium to its recent share price and valuing the firm at C$2.07 billion ($2 billion).
The acquisition of Tanganyika Oil brings 184 million barrels of proven heavy oil reserves at roughly $10 a barrel for Sinopec Group, Asia's top oil refiner and the parent company of Sinopec Corporation.
Earlier this month, newspaper reports said ONGC was looking to acquire Tanganyika for between $1.2 billion and $1.5 billion.
The deal marks a win for Sinopec over other ONGC which last month beat Sinopec to buy Imperial Energy, a small London-listed oil firm producing in Russia for $2.6 billion.
China is looking for acquisitions mostly in states whose governments are more open to Chinese involvement, especially in Africa and Latin America.