Sinopec To Upgrade Its Business

China?s third oil producer Sinopec plans to increase the number of its petrol stations and modernize its operations.

Sinopec is to realize a $553 million asset swap deal with its parent firm China
Petrochemical, giving it more petrochemical plants and extra petrol stations.

Analysts believe the deal would improve Sinopec's structure, since the company will be able to gain from strong demand for petrochemicals and private cars.

Sinopec also plans to pass back its loss-making oil field services business to China Petrochemical, in exchange for profitable chemical plants. It will acquire 1,023 petrol stations from China Petrochemical. Demand for petrol is growing rapidly alongside car ownership in China.