China Petrochemical Corp. is the largest oil and gas refiner in Asia. The company's unit, Sinopec International Petroleum Exploration & Production Corp. had agreed to pay USD3.1 billion for a 33% stake in Apache Corp.'s Egyptian oil and gas business. This marked the biggest purchase for the refiner in the Middle East.

According to Bloomberg calculations, the purchase would raise the company's annual production by about 9%. Apache's oil and gas business is located in the Western Desert, away from the center of political tension in Egypt. The deal also marked an increasing investment by China in the energy sector.

Hong Kong-based analyst at Sanford C. Bernstein said, "There definitely does seem to be resurgence in overseas M&A. The potential of PetroChina going back into Iraq and this deal in Egypt shows a willingness to take on more risk in this part of the world."

Wei Fujun, Sinopec International Petroleum Exploration & Production Corp. said that the company is aware of the political uncertainties in Egypt. However, it had directed its focus on long term development in the region. He also added that the USd3.1 billion purchase price was very reasonable.