Recently, Sinopec agreed to increase its stake in the Australia Pacific liquefied natural gas ( LNG ) project by 10%, thus taking its share to 25%. These transactions are a part of Sinopec's strategy of widening its oil and gas operations in foreign locations that hold immense potential with rich resources. The other major areas of concern include operational disruptions, labor and material cost inflation affecting project outlays, governmental regulations and severe competition from domestic and international peers such as CNOOC Ltd. ( CEO ).