SINOPEC Paid $2.46bn to French TOTAL for Its 20% Stake in OML 13a8

Sinopec International Petroleum Exploration & Production Corp., has announced that it has acquired the French giant Total's 20% stake and operating licenses in offshore block OML 138 positioned in the Usan field in the Niger Delta basin. The subsidiary of Sinopec acquired this stake for $2.46 billion.

China Petrochemical Corp., better recognized as Sinopec Group, has revealed on Monday that this acquisition will facilitate it to get 100 million barrels of "recoverable resources."

Total's President for upstream - Yves-Louis Darricarrere has authenticated the deal via releasing a statement on Monday. He stated, "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 includes the Usan field that began production from this February. Discovered in 2002, Usan field has 180,000 b/d production capacity.

The State-run NNPC owns the concession for block OML 138. This block s other associates are Chevron, ExxonMobil and Canadian Nexen Petroleum. This block s 60% is equally shared amid Chevron and ExxonMobil, while Nexen Petroleum owns a 20%stake in the same.

Subsequent to the acquisition, Sinopec will have about 100 million barrels of exploitable resources via its venture in the block, according to Sinopec.

Sinopec has revealed via a statement that the deal will be beneficial for it, as it will increase a considerable asset to its product portfolio as well as offer the company with a new chance to grow proficiency in deepwater exploration and production.

The company is focused to shape affiliations with global firms instead of opting for direct purchases abroad, according to Sinopec s Chairman Fu Chengyu s November 13 statement.

The group s July pronouncement revealed that it crafted a new joint venture with Canadian Talisman Energy, and this deal offered the Chinese firm with a 49% venture in the UK North Sea business of Talisman. The Chinese sector leader spent $1.5 billion for this 49% stake.

The CNOOC, a state-run Chinese oil firm, has decided to acquire Nexen. However, this transaction is stuck after the Government of Canada decided to assess its overall implication on the country.