Sinopec to sell stake in marketing operations

Asia's largest refiner will divest a large portion of its downstream marketing business

The state-owned major will sell off 30% of its massive marketing business by Q3 this year in a restructuring that could potentially be worth between $10-$20bn.

The sale would see Sinopec divest a significant portion of its 30,000-strong fuel station network, as well as 20,000 accompanying convenience stores.

At a recent press briefing, Sinopec Chairman Fu Chengyu claimed the proceeds from the sale would be put towards developing its fledgling shale gas business. Other industry analysts also believe the sale could help minimise wastage in the notoriously low-margin business.

The sale would be open to both domestic and international investors, which may or may not include other global energy players - such as BP, Shell and ExxonMobil - some of whom already operate strategic ventures with Sinopec. Sources close to Fu also hint the company may be looking for an e-commerce partner to contribute online sales expertise.

As profits suffer from increased refining costs and price caps, many global majors are shrinking downstream in favour of high-margin exploration and production activities.