PETROCHINA, the biggest oil and gas producer in Asia, said yesterday it would buy a 45 per cent stake in Singapore Petroleum (SPC) for S$1.47bn (£1.38). It also said it would make a bid to buy the rest of the company.
The acquisition is the latest in a series of purchases which could increase China’s influence on the price of resources.
SPC’s main asset is a refinery in Singapore, Asia’s oil trading and pricing hub, and so the acquisition could give PetroChina more leverage and flexibility in oil trading.
It will be PetroChina’s first acquisition of an overseas public company.
The move into downstream fuel production adds to efforts by Chinese oil majors to buy upstream oil exploration assets around the world.