The state-owned company said it's setting up a $3 billion joint venture with its parent, China Petrochemical Corp., to acquire the assets. Each company will provide half the investment amount for the joint venture but Sinopec will have control.
Chief Financial Officer Wang Xinhua said Monday the "acquisition will bring substantial potential to the company." The deal is forecast to raise its proven crude oil reserves by 9 percent.
Profit at Asia's biggest refiner by volume fell by 13 percent last year to 63.9 billion yuan ($10.3 billion) as income at its chemicals unit plunged on low demand because of the economic slowdown in China.