China pays $24.60 a Barrel for 100 million barrels of a Producing Well!
A Sinopec subsidiary, Sinopec International Petroleum Exploration & Production Corp., paid $2.46 billion for Total's 20% stake and operating rights
China Petrochemical Corp., known as Sinopec Group, said, on Monday, it would gain 100 million barrels of "recoverable resources" from the purchase of French major Total SA's stake in offshore block OML 138 located in the Usan field in the Niger Delta basin.
A Sinopec subsidiary, Sinopec International Petroleum Exploration & Production Corp., paid $2.46 billion for Total's 20% stake and operating rights in offshore block OML 138.
Confirming the sale in a statement issued on Monday, Total's president for upstream, Yves-Louis Darricarrere said: "Usan accounts for less than 10% of the group's equity production in Nigeria. The sale of the asset operated from a minority position will allow us to focus our resources on the material growth opportunities in Total's portfolio."
OML 138 contains the Usan field, which started production in February. Usan, discovered in 2002, has the capacity to produce 180,000 b/d.
State-owned NNPC is the concession holder of block OML 138. Other partners include Chevron with 30%, ExxonMobil (30%) and Canada's Nexen Petroleum (20%).
After the purchase, Sinopec said it will have around 100 million barrels of recoverable resources through its interest in the block.
In a statement, Sinopec said the transaction will not only add a sizable asset to its portfolio but that it will also provide the company with another opportunity to develop expertise in deepwater exploration and production.
Sinopec's strategy is to form partnerships with international companies rather than to target direct acquisitions overseas, its chairman Fu Chengyu said November 13.
In July, the group announced a new joint venture with Canada's Talisman Energy, which gave the Chinese giant a 49% stake in Talisman's UK North Sea business for $1.5 billion.
.
