BP Amoco eyes Sinopec stake
Sheel Kohli in London
BP Amoco is willing to take a stake in the planned initial public offering (IPO) of Sinopec, the mainland's second-largest oil company.
'Buying a stake could be a way of enhancing our presence in China,' a spokesman for the Britain-based oil, gas and petrochemical company said yesterday.
However, details of the IPO - which have yet to be disclosed - would need to be analysed before BP Amoco could decide on the scale of commitment, the spokesman said.
'While the details of the IPO have not yet been published and there may be considerable competition for this offer, in principle BP would be prepared to invest in the Sinopec IPO.' BP has been increasing its presence on the mainland, most recently with its decision to take a 2 per cent stake in PetroChina, the biggest mainland oil group, at a cost of just under US$600 million. That investment provided a significant boost to PetroChina, whose IPO in April came under heavy pressure after US labour unions urged investors to boycott the offering, because of PetroChina's investments in Sudan.