Cape Town (Platts)--19Nov2012/920 am EST/1420 GMT
France's Total confirmed Monday reports it has sold its 20% contractor interest in Nigerian block OML 138 to China's Sinopec for approximately $2.5 billion in cash. 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%). "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," said Total's president for upstream, Yves-Louis Darricarrere. Article continues below...Request a free trial of: Oilgram NewsOilgram News brings fast-breaking global petroleum and gas news to your desktop every day. Our extensive global network of correspondents report on supply and demand trends, corporate news, government actions, exploration, technology, and much more.
France's Total confirmed Monday reports it has sold its 20% contractor interest in Nigerian block OML 138 to China's Sinopec for approximately $2.5 billion in cash. 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%). "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," said Total's president for upstream, Yves-Louis Darricarrere.
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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. Another Chinese oil company, state-owned CNOOC, has agreed to buy Nexen, but the deal is being held up as the Canadian government considers whether the takeover is in the national interest.--Jacinta Moran, jacinta_moran@platts.com--Edited by Alisdair Bowles, alisdair_bowles@platts.com
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