Sources with China Petroleum & Chemical Corporation (Sinopec Corp.) have denied the reports in Britain on BP's offer of 14 billion U.S. dollars for Sinopec stakes, Beijing Times reports.

British news media including The Observer have published reports that the Chinese government has approved a joint venture between Sinopec and BP and that BP will inject 14 billion U.S. dollars for about 25 percent of Sinopec's shares.

The reports say the Chinese government has given go-ahead to BP for its investment in Sinopec so as to accelerate the company's pace in overseas acquisitions.

They say it might be TNK BP, a company that holds stakes in Russia, that will make the investment.

The cooperation will benefit the both sides. On the one hand, BP will be able to enter the Chinese market that has a huge demand for oil, and on the other hand Sinopec can step out of Asia with the deal. Sinopec is now far behind China National Petroleum Corporation (CNPC) and China National Offshore Oil Corporation (CNOOC) in overseas business, the British media reports.

Yesterday, an authoritative personage with Sinopec, who refused to be identified, told reporter in a phone confirmation that "there's no such a thing."

Share prices of Sinopec started at 5.23 yuan Monday and closed at 5.35 yuan.

By People's Daily Online