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.
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