Eni Signs MOU With Sinopec as It Seeks Expansion in Far East

Eni SpA (ENI), Italy’s biggest oil company, confirmed an Ansa newsire report that it has signed a memorandum of understanding with China Petroleum & Chemical Corp (600028), Asia’s largest oil refiner known as Sinopec.

The Rome-based company is interested in shale gas opportunities in China, while Sinopec is seeking to grow in areas like Africa with Eni’s help, Chief Executive Officer Paolo Scaroni told Ansa in an interview in Beijing. The newswire reported that the details of the deal will be made known in the next few days.

Eni signed a memorandum of understanding in January with China National Petroleum Corp that included cooperation in Africa and on shale gas and the possible purchase of stakes in Eni assets by the Chinese company, known as PetroChina.

Eni has been active in China since 1984 and is seeking to grow in the Far East. The Rome-based company is the largest oil producer in Africa, a continent where Chinese companies have been buying resources to feed their growing economy.

To contact the reporter on this story: Alessandra Migliaccio in Milan at amigliaccio@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

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