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China agrees huge Canadian oil stake

China agrees huge Canadian oil stake
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A subsidiary of China’s Sinopec Group has agreed a 3.5 billion euro deal for ConocoPhillips’s stake in a Canadian oil sands project.

It marks China’s second largest investment in North America.

The markets claim Sinopec paid more than twice the value for the stake.

Beijing has been scanning the globe in search of energy sources, spending billions on energy resources to support its booming demand.

The Sinopec purchase, China’s fifth-largest in history, highlights the interest in the vast but difficult to extract oil sands energy resource in the province of Alberta.

Investment in the oil sands project gained momentum since crude prices passed the 80 dollars a barrel mark and the global economy shows signs of recovery.

Sinopec says the deal is subject to government and regulatory approval in China and Canada though it appears that the sale will go ahead.