Sinopec confirms Angola oil deal

<p>Sinopec has bought US firm Marathon Oil Corporations’s stake in an Angolan oil field.</p>

Sinopec has made another major move in the oil market by purchasing US firm Marathon Oil Corporation's shares in an Angolan gas and oil field.

It was confirmed by the company that it is set to pay $1.52 billion (£985 million) for Marathon's ten per cent stake in the field. This comes two years after the firm purchased a five per cent stake in the field from France's Total.

Sinopec, known formally as China Petrochemical Corporation, is Asia's biggest oil refiner.

It claims the Angolan block has proven and probable reserves of 533 million barrels of oil, but Chinese and Angolan governments must both give their approval for the deal to go through.

Sinopec's share price is slightly up today (June 25th) on the back of the news it is extending its stake in the Angolan oil and gas field.

At 08:34 BST, its stocks were trading 1.77 per cent higher than they were at the start of the day.

Learn about the Asian markets and CFD trading at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.