Sinopec Considering Bid for Chesapeake Assets, FT Says

Sinopec, the Chinese oil and natural-gas company, is weighing spending billions of dollars for Chesapeake Energy Corp. (CHK) 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.

To contact the reporter on this story: Jim Polson in New York at jpolson@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net

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