Blog 5

NATURAL RESOURCES

Sinopec bids $2.2-billion for Alberta energy company

Sinopec, the name of the Chinese company that just bought out the Canadian energy company, Daylight. Sinopec bought the Daylight Energy Company for $2.2 billion. Although this may seem like a nice addition to the company as they attain a lot of oil and gas, there is a lot more that the company has to think about before following through with the transaction. They have to see whether their gain will out way what they are buying for the company. One way they could do this is to create a Time Value Line! Daylight has access to land to drill up to 100 wells for the next two decades. With the perchance by Sinopec, the company will finally be able to fully maximize the resources that are available to them. Once the deal if finalized, Canada will be shipping out gas to Asia. This will be the first case in which Canada exports any energy sources into Asia. After Sinopec assessed the deal thoroughly, it came to the conclusion that this deal would not only benefit them for a short term period, but instead, would be a long term success.

Article: The Globe and Mail

NATHAN VANDERKLIPPE

CALGARY— Globe and Mail Update

Published Sunday, Oct. 09, 2011 1:59PM EDT

Last updated Sunday, Oct. 09, 2011 11:52PM EDT

 

http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/sinopec-bids-22-billion-for-alberta-energy-company/article2196041/

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