2010-12-10 15:13

BEIJING - China Petrochemical Group (Sinopec), China's largest oil refiner, said Friday it has agreed to purchase US Occidental Petroleum Corp's Argentinean subsidiary for $2.45 billion.

Sinopec said in a statement Friday the acquisition includes all assets of Occidental Argentina.

Occidental Argentina has gross proven and probable reserves of 393 million barrels of oil equivalent and an interest in 23 production and exploration concessions in Argentina, 19 of which the company operates, said the statement.

Occidental Argentina's production from 22 producing concessions totaled more than 51,000 barrels of oil equivalent per day last year.

The purchase is Sinopec's first investment in the Argentina's oil and gas sector. The move, another step in Sinopec's internationalization, aims to secure Chinese oil supplies, according to the statement.

The deal is still subject to government approval.

Occidental Petroleum Corp, the fourth largest US oil and gas company by market value, was not available for comment.

Occidental Petroleum Corp is an international oil and gas exploration and production company with operations in the United States, the Middle East and Latin America.