Britain’s energy giant BP plc (GB:BP) and Beijing-based China Petroleum & Chemical (HK:0386), popularly called Sinopec, have teamed up to strengthen China’s oil and gas and energy transformation markets. The duo will work towards providing more alternatives to China’s new energy transformation initiatives while also furthering their oil and gas businesses. The two signed a memorandum of understanding (MOU) yesterday at the World Economic Forum’s Annual Meeting in Davos, Switzerland.
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FTSE 100-listed BP plc is a leading player in the world’s oil and gas market. The company is steadily pacing ahead with its transformation from being an integrated oil company (IOC) to an integrated energy company (IEC). BP shares have lost over 8% in the past year.
Meanwhile, Sinopec is the world’s largest oil refining, gas, and petrochemical company. 0386 shares have lost nearly 7% in the past year.
Here’s How BP and Sinopec will Team Up
As per a Reuters report, BP and Sinopec will work together in areas such as fuel sales, oil and gas trading, and upstream activities. Moreover, they will explore solutions for new energy transformation and new energy vehicle (NEV) charging to improve China’s emerging NEV market.
The two have been working in cooperation for the last three decades. BP operates fuel stations across China in partnership with Sinopec. Also, the two have a marine fuel bunkering joint venture in Singapore since 2015. Plus, BP supplies jet fuel and lubricants and undertakes oil and gas trading activities on the mainland. The two companies are also actively involved in providing charging infrastructure for NEVs in the country.
Is BP a Good Long-Term Stock?
Analysts are cautiously optimistic about BP’s long-term stock trajectory. On TipRanks, BP stock has a Moderate Buy consensus rating based on eight Buys, three Holds, and one Sell rating. The BP plc share price target of 626.25p implies 40.1% upside potential from current levels.
Is Sinopec a Buy, Sell, or Hold?
On TipRanks, 0386 stock has a Moderate Buy consensus rating based on two Buys versus three Hold ratings. The China Petroleum & Chemical share price forecast of HK$5.09 implies 35.3% upside potential from current levels.
