China’s Sinopec acquires Canada’s Daylight Energy
China’s Petrochemical Corp., also known as the Sinopec Group, has agreed to buy Canadian oil and gas explorer Daylight Energy for $ 2.1 bn.
The Sinopec purchase is only the latest of recent Chinese investments in Canada’s booming energy industry.
Two months ago China National Offshore Oil Corporation (CNOOC), China's dominant offshore oil producer, agreed to acquire bankrupt oil producer Calgary, Alberta-based company OPTI Canada for $ 2.1 bn.
Last year Sinopec Group paid ConocoPhillips $ 4.65 bn for a 9.03 % share stake in Canada’s Syncrude oil fields.
Daylight Energy chief executive Anthony Lambert commented that the Sinopec Group offer "recognizes the highly attractive asset portfolio and exceptional terms we have assembled at Daylight".
In 2010 Daylight Energy's proven and probable reserves rose 46 % to 174 mm barrels of oil, 70 % of which is natural gas.
The Sinopec Group-Daylight Energy deal, which has been approved by Daylight's board, must still be approved by Daylight shareholders and the Chinese and Canadian governments.
Daylight Energy went public on the Toronto Stock exchange in 2004. The Sinopec Group purchase will give the company the right to explore and develop 30,000 acres of Canadian oil and natural gas concessions.