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. Last Updated: 07/27/2016

BP Plans Sinopec Stake

LONDON -- BP Amoco PLC said Thursday it planned to buy a stake in Sinopec, China's second-largest oil company, boosting its presence in what it sees as a key future market.

Sinopec also has a gas project in eastern Siberia where it works with Russia Petroleum toward development of the Kovykta field that could one day supply natural gas to China and East Asia.

Sinopec plans an initial public offering, or IPO, valued by analysts at $1.5-2 billion or more, in September.

BP already has a 2.2 percent stake in PetroChina, the leading Chinese oil company, for which it paid about $620 million when it floated last April.

China National Offshore Oil Corp, Sinopec's smaller offshore counterpart, also plans a flotation later this year.

Both are lining up strategic partners ahead of their IPOs.