Sinopec agrees USD2.5bn oil shale deal

Sinopec agrees USD2.5bn oil shale deal
China Petrochemical Corporation (Sinopec) has started the new year with a significant international acquisition, agreeing to invest up to USD2.5bn for a one-third stake in five US oil shale projects owned by Devon Energy. Sinopec International Petroleum Exploration and Production Corp, a wholly owned subsidiary of state-owned Sinopec, will pay Devon USD900m in cash for its stake in the projects and as much as USD1.6bn in the form of a drilling carry that will fund 70% of Devon’s capital requirements.

Sinopec Buys Assets from Devon Energy Corp for 2.2 Billion

The Chinese are keeping up their aggressive buying of resources abroad to assure stability at home.

BEIJING – China’s Sinopec Group said on Tuesday that it will acquire a third of five shale oil and gas assets in the United States from Devon Energy Corp for US$2.2-billion.

Sinopec International Petroleum Exploration & Production Corp (SIPC), a unit of Sinopec Group, will pay 30% in cash and the remaining 70% in carry, and expects to complete the whole payment by the end of 2014.