Sinopec Acquires Canada's Daylight Energy

Sinopec International Petroleum Exploration and Production Corp. has agreed to acquire Canadian oil and gas producer Daylight Energy Ltd. for $2.2 billion.

The bid by the  unit of China Petrochemical Corporation (Sinopec Group), China's largest producer and supplier of oil and major petrochemical products, the latest move by a Chinese company to acquire energy assets in Canada.

Daylight Energy explores for crude oil and natural gas liquids in the Deep Basin of Alberta and in northeastern British Columbia. The company generated a profit of more than $45 million last year on annual revenues of $656 million.

Sinopec is already a major player in the Canadian energy industry. Last year, it paid US$4.65 billion to acquire U.S. oil giant ConocoPhillips' stake in the Syncrude oilsands project in northern Alberta. The deal for a nine per cent share of the world's biggest oilsands development marked China's largest-ever investment in North America.

Sinopec also owns a 50 per cent stake in the Northern Lights oilsands project in northern Alberta, in partnership with French oil company Total S.A.