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To acquire 55% WI in co. with assets offshore Angola from parent.

China Petroleum and Chemical Corp., Beijing, (NYSE: SNP) also known as Sinopec, plans to acquire 55% of Sonangol Sinopec International Ltd. from a subsidiary of its parent company, China Petrochemical Corp., Beijing, for US$2.46 billion.

The transaction, which includes debt from Sinopec Overseas Oil &Gas Ltd. totaling US$779 million, marks Sinopec's first acquisition of overseas upstream assets.

Sonangol Sinopec has a 50% interest in Angola Block 18, a deepwater oil asset with proved reserves of 102 million barrels. The acquisition will increase Sinopec's proved reserves by 3.6% and its daily production by 8.8%, adding 72,520 barrels of oil per day.

Block 18 is divided into east and west zones; the east zone has been in operation since October 2007, with daily production capacity of 240,000 barrels of oil. The west zone is in the development phase; three exploration wells have been successfully tested there. BP Plc owns the remaining 50% interest in the block.

Sinopec shareholders will vote on the acquisition at the company's annual meeting in May.