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SINOPEC Is Selling Its Argentina Assets at a Loss

Well-known Chinese news site Sina recently reported that SINOPEC (China Petroleum & Chemical Corporation) is looking for buyers for its assets in Argentina. The primary asset is located in the Santa Cruz region and is priced at US$0.75~1 billion. This asking price is not even half of the cost SINOPEC paid in 2010 when it first bought this asset from U.S. Occidental Petroleum at US$2.45 billion. SINOPEC has been losing money (around US$2.5 billion as of 2015) in Argentina and it is also facing labor troubles. It is estimated that there may be 15 potential buyers mainly from the U.S., Europe, Africa, and Latin America. However, Russia and Mexico are also interested. The SINOPEC selling plan has not yet been announced publicly, so all information sources remain anonymous. New oil fields have been found near the SINOPEC fields that sold recently. This may further hurt SINOPEC’s deal. SINOPEC is the largest oil refiner in Asia.

Source: Sina, October 9, 2017
http://finance.sina.com.cn/stock/hkstock/ggscyd/2017-10-09/doc-ifymrcmm9556742.shtml

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