By Jim Bai and Farah Master for Reuters.com
* Deal marks first Sinopec resource purchase in Argentina
* Investment follows $7 bln Argentine purchase by CNOOC
* Chinese energy investments in Latin America soaring
BEIJING/HONG KONG, Dec 10 (Reuters) - China Petrochemical Corp, parent of Sinopec Corp, has agreed to buy Occidental Petroleum's Argentine assets for $2.5 billion, the second major Chinese purchase of energy resources in the South American country in as many weeks.
Sinopec (0386.HK), the top refiner in Asia and China's largest oil company by sales, said in a statement on Friday the takeover was subject to government approvals.
Its move adds to a growing list of international natural resources deals by state-backed Chinese companies in the past two years. China has invested in projects across South America as the world's most populous nation scrambles to secure supplies for its surging economy. (Map: China's recent oil and gas deals in Latin America r.reuters.com/bad69q )
The Argentine unit of the fourth-largest U.S. oil company, Occidental
Petroleum Corp (OXY.N), holds interest in 23 production and exploration concessions in the provinces of Santa Cruz, Mendoza and Chubut, Sinopec said.
As of Dec. 31, 2009, the concessions held gross proven reserves plus probable reserves of 393 million barrels of oil equivalent. Gross production from 22 producing concessions totaled over 51,000 barrels of oil equivalent per day in 2009.
"Overall I do think this is a fair price," said Neil Beveridge, analyst at Sanford C. Bernstein in Hong Kong.
"It continues along the theme of the globalization of Chinese oil and gas companies and deepens their interest in Latin America, which I think strategically is important for China," he added.
Occidental said in its 2009 annual report that its concessions in Argentina would expire in 2017, and it was looking to extend the terms of its concessions in southern Santa Cruz province.
"In the event Occidental is unsuccessful in obtaining these extensions, Occidental will reevaluate its operations and investments in the country, which may result in decreases in future investment capital allocated to its operations in Argentina and further impairments of its existing investments," the report said.
Occidental, which spent $1.1 billion on acquisitions in the third quarter, said on Friday it would buy $3.2 billion in oil and natural gas properties in Texas and North Dakota.
SLUGGISH INVESTMENT
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China's Sinopec buys Occidental Argentine assets
