Sinopec International Petroleum Exploration and Production Corporation, the wholly-owned subsidiary of China Petrochemical Corporation, has announced that it will acquire all the outstanding common shares of Canadian Tanganyika Oil Company, by way of a negotiated take-over bid for CAD31.50 per share in cash.

The Beijing-based SIPC was founded in January 2001, with a registered capital of CNY6.31 billion. It undertakes overseas investments and operations in the upstream oil and gas sector of Sinopec Group.

"We are pleased to announce that Tanganyika has entered into a transaction with SIPC," stated Gary Guidry, president and CEO of Tanganyika. "Tanganyika has conducted a tremendous volume of work to enhance the Syrian assets over the past five years. SIPC's world class scale and expertise promise continued growth and enhancement to this asset base. We believe this transaction is in the best interest of Tanganyika and delivers immediate and significant value to our shareholders."

This transaction is an important component of Sinopec Group's strategy to become a diversified global resource provider. Currently about 80% of the crude oil needed by Sinopec is imported. The acquisition will help Sinopec increase upstream earnings.

Tanganyika Oil is an international oil and gas exploration and production company with interests in exploration and development properties in Syria.