Bloomberg News

Sinopec Considering Bid for Chesapeake Assets, FT Says

June 20, 2012

Sinopec, the Chinese oil and natural-gas company, is weighing spending billions of dollars for Chesapeake Energy Corp. (CHK:US) assets, the Financial Times reported.

Fu Chengyu, chairman of Sinopec, was in Oklahoma this week as the company performs a due diligence review of Chesapeake assets, the newspaper said today, citing unidentified people familiar with the move.

Buying assets rather than the Oklahoma City-based company itself may reduce the sort of political backlash that derailed Cnooc Ltd. (883)’s $18.5 billion bid for Unocal Corp., the paper said.

Chengyu said on May 11 that China Petroleum & Chemical Corp. (600028) has held talks with Chesapeake and other North American shale-gas holders about investing as it seeks to diversify.

To contact the reporter on this story: Jim Polson in New York at

To contact the editor responsible for this story: Susan Warren at

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Companies Mentioned

  • CHK
    (Chesapeake Energy Corp)
    • $21.66 USD
    • 1.02
    • 4.71%
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