Unpredictability of Trump’s Policy Pushes Latin America in China’s Hands
SputnikNews.com
26.02.2017
Tensions between Washington and Beijing and the uncertainty of US President Donald Trump’s policy create conditions for tighter cooperation between China and Latin America.
Chinese conglomerate Sinochem is considering the sale of its 40 percent stake in Brazil’s Peregrino offshore field, Reuters reported citing sources familiar with the matter.
Two of the sources said that Sinochem is exploring the sale of its largest overseas upstream stake due to a dramatic decline in oil prices. In the last two and a half years, global crude prices have halved. The oil and chemicals firm is now struggling to restructure its assets, in a bid to adapt to the new pricing.
Sinopec bought the stake in the Peregrino offshore field from Norway’s Statoil for $3.07 billion in 2010. A source said that due to the low oil prices the Chinese company is ready to sell it at a discount.
The other 60 percent in Peregrino is controlled by Statoil. Two sources said Sinochem’s intent to sell the stake has been shared with India’s Oil and Natural Gas Corporation (ONGC), according to Reuters.
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