Key Transaction Sinopec Oilfield Service Corporation (Sinopec SSC) will acquire the remaining 50 % equity in DS Servicios Petroleros, S.A. de C.V. (Mexico DS Company) from partner DIAVAZ for USD4.00 million. The deal also includes the purchase of the 0.01 % Ebano Project interest held by DIAVAZ’s subsidiary D&S Petroleum. Post-closing, Sinopec SSC subsidiaries will own 100 % of Mexico DS Company and gain an indirect 55 % operating interest in the Ebano oilfield.
Follow-on Capital Commitment After completion, Sinopec International Petroleum Service Corporation (IPSC) plans to inject up to USD212 million into the Ebano Project via loans or internal funds. Mexico DS Company will be fully consolidated in Sinopec SSC’s financial statements.
Valuation Background China United Assets Appraisal valued the transferred 50 % stake at RMB77.73 million (benchmark date: 31 Dec 2025). The negotiated USD4.00 million consideration reflects the asset appraisal and the target’s financial condition.
Target Financial Snapshot (MXN) • 30 Jun 2026 total assets: 6.81 billion • 30 Jun 2026 net assets: 2.27 billion • 1H-2026 revenue: 232.39 million • 1H-2026 net loss: 81.78 million Mexico DS Company booked a full-year 2025 net loss of 253.92 million.
Strategic Rationale DIAVAZ’s recurring losses had delayed Ebano’s development. Full ownership allows Sinopec SSC to deploy proprietary integrated geology-engineering technology and leverage two decades of Mexican operating experience to accelerate field development and optimise its regional portfolio.
Revised Guarantee Framework The acquisition converts Mexico DS Company from a joint venture to a wholly-owned subsidiary, triggering reallocation of previously approved guarantees: • Performance guarantees for wholly-owned subsidiaries rise to RMB42.63 billion, an increase of RMB1.93 billion driven by a dedicated ceiling of USD275 million (about RMB1.93 billion) for Mexico DS Company. • Credit guarantees for subsidiaries remain capped at RMB31.50 billion.
As of 30 Jun 2026, Sinopec SSC had outstanding guarantees of RMB32.64 billion, with no overdue amounts.
Conditions & Timeline The board approved the transaction on 17 Aug 2026. Completion is contingent on: 1. Shareholder approval at the 22 Sep 2026 EGM. 2. Amendments to Mexico DS Company’s articles, regulatory clearances, PEMEX consent and creditor waivers. 3. Subsequent investment proceeds only after the equity transfer closes.
Risk Considerations Key risks include foreign-exchange volatility, cross-border operational challenges, and potential delays if closing conditions are not met. External factors such as changes in political, economic, or geological conditions in Mexico could impact project economics and Sinopec SSC’s future results.
Extraordinary General Meeting Shareholders will vote on: 1. Acquisition of the 50 % stake and additional investment. 2. Adjustment of guarantee limits. The meeting will be held on 22 Sep 2026 in Beijing.