Sinopec-SK Petrochemical, a joint venture firm of South Korea’s energy and chemical company SK Innovation and Chinese oil and gas enterprise Sinopec, has acquired an oil refinery based in Wuhan city in China, according to the firm on Monday. 

SK Global Chemical, an affiliate of SK Innovation, held a board meeting and decided to acquire Chinese oil refinery Wuhan Refinery.

The company will invest 1.1 billion yuan ($160 million) in cash for the acquisition while Sinopec will invest 2 billion yuan in assets, according to the Korean firm’s regulatory filing.

The total acquisition price of Wuhan Refinery is 12.8 billion yuan and the remaining costs will be covered through external funds.

After the tie-up is completed in the second half of this year, the Korean chemical firm will indirectly possess the oil refiner in China. Wuhan Refinery is capable of refining 170,000 barrel of oil per day. 

By Shin Ji-hye(shinjh@heraldcorp.com)