In terms of energy acquisitions, $3.1 billion might not seem like that high of a price tag, but a deal that size was enough to drive Apache's (APA 1.45%) value up over 8% last Friday. For years, Egypt has weighed heavily on this company but for reasons outside of the company's control. Turmoil in the region since the beginning of the Arab Spring has plagued Apache's valuation given that over 25% of the company's revenue came from Egypt prior to this deal. Now, a third of its Egyptian assets will fall under the control of Chinese energy giant, Sinopec (SHI -0.06%).
Deals like this could continue to increase in frequency based on the hunger for greater access to energy resources displayed by the Chinese people. Already, Sinopec has formed joint ventures with Chesapeake Energy (CHKA.Q) and Devon Energy (DVN 1.54%). By reaching outside of the United States to a much riskier locale, it is clear that Sinopec is serious about its plans to spend $60 billion by 2020 on acquisitions. For more on this deal, tune in below.