A Big Leap for a Chinese Oil Giant

Sinopec, China’s largest oil refiner, is taking a big step outside of its comfort zone with the $7.2 billion acquisition of Canadian oil producer Addax Petroleum. With little experience in exploring and producing oil and natural gas outside of its home country, Sinopec will now be expected to navigate the treacherous waters of the international oil game in places like Iraq and West Africa — no easy task. Sinopec, which is effectively owned and controlled by China’s government, has far more experience as a refiner than an oil producer. It mostly takes delivery of crude and processes it into refined products like gasoline and diesel to power the energy-hungry country. Its oil extraction experience is largely domestic, on-shore work in the country’s various energy plays in western China. The two other major Chinese energy... [read full story]                    

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