Sinopec Corp. to Acquire Assets from Its Parent    

Sinopec Corp. (SH: 600028) announced on June 27th that it plans to spend RMB1.56 billion to purchase down-hole operation assets of maintenance nature, auxiliary services and related liabilities in six subordinate branches of Sinopec Group. The six branches are Shengli Oilfields Administrative Bureau, Zhongyuan Petroleum Exploration Bureau, Henan Petroleum Exploration Bureau, Jianghan Oilfield Administrative Bureau, Jiangsu Petroleum Exploration Bureau and Huadong Petroleum Bureau.
   In addition to these oilfield maintenance down-hole operation assets, Sinopec Group also owns oilfield service assets such as large fracturing business. There is yet no plan to sell these assets to Sinopec Corp.
   As the acquisition is closely related to Sinopec Corp.'s current oilfield production and operation, the move can help meet the needs in down-hole operations in oil recovery plants of Sinopec Corp., maintain stable production and cut cost.