China Aims For Market Share In African Refining Sector

23 Jun 2017   Africa, China

On 22 March 2017, Sinopec agreed a deal to buy out Chevron’s downstream businesses in South Africa and Botswana, in China’s first major investment into the downstream oil industry in Africa. Although China already has an extensive footprint in Africa, the majority of these operations have been confined to the upstream sector – in oil and gas exploration. China has been steadily expanding its upstream operations outside China since the late 1990’s, through its three main state-controlled oil companies : CNPC, Sinopec and CNOOC, in an attempt to meet the country’s growing oil demand. Over the past several decades, China’s oil demand has risen drastically, driven by continued economic growth, an expanding middle class and a growing demand for consumer goods. China is now the world’s second-largest oil consumer, but due to a steady drop in domestic production – thanks to high production costs, a deterioration in mature oilfields, […]

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