View Full Version : China's Sinopec weighs takeover of Gulf Keystone

12-14-2016, 12:54 PM

(Reuters) -- China's Sinopec Corp is weighing a takeover of Gulf Keystone Petroleum, an oil company operating in the Kurdistan region of Iraq, Bloomberg reported on Tuesday.

Sinopec, Asia's largest refiner, is working with advisers and has made an approach to Gulf Keystone, Bloomberg reported, citing sources familiar with the matter.

The company may also attract other bidders, according to Bloomberg.

A spokesman for Gulf Keystone declined to comment, while Sinopec could not be immediately reached for comment.

Gulf Keystone has been fighting to avoid insolvency after low oil prices and overdue oil export payments from the Kurdistan regional government crippled its balance sheet.

The Kurdish oil producer's market value has tumbled to about $368 million as of Monday's close from its peak valuation of 3.5 billion pounds in February 2012, according to Reuters calculations.

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