Beijing, October 11th - Sinopec International Petroleum Exploration and Production Corp, a wholly-owned unit of state-owned Sinopec Group, has completed the purchase of an 18 percent stake in Chevron Corp's Indonesian deep-water project for $680 million, a Sinopec official told Reuters on Tuesday.
The move marks Sinopec Group's return to Indonesia after its withdrawal in 2006.
The deep-water project, located in the Kutei basin off East Kalimantan, included the Rapak, Ganal, and Makassar Strait blocks, with a water depth of between 550 and 1,900 meters, the official said, declining to be identified.
The project includes one under-producing oil field and five oil and gas fields that have yet to be developed. Remaining recoverable reserves total 15 million barrels of crude oil and 700 billion cubic feet of natural gas. The project was expected to have a peak 370 thousands metric tonnes of equity oil and 79 billion cubic feet of equity gas in 2016, Sinopec Group said in a statement on its website.
The deal signals a pick-up in M&A activity by Chinese energy companies seeking to secure energy supplies to power the country's booming economy.
Sinopec Group signed an agreement to buy Canadian oil and gas explorer Daylight Energy Ltd for C$2.2 billion ($2.1 billion) in cash earlier this month. - Reuters.
The move marks Sinopec Group's return to Indonesia after its withdrawal in 2006.
The deep-water project, located in the Kutei basin off East Kalimantan, included the Rapak, Ganal, and Makassar Strait blocks, with a water depth of between 550 and 1,900 meters, the official said, declining to be identified.
The project includes one under-producing oil field and five oil and gas fields that have yet to be developed. Remaining recoverable reserves total 15 million barrels of crude oil and 700 billion cubic feet of natural gas. The project was expected to have a peak 370 thousands metric tonnes of equity oil and 79 billion cubic feet of equity gas in 2016, Sinopec Group said in a statement on its website.
The deal signals a pick-up in M&A activity by Chinese energy companies seeking to secure energy supplies to power the country's booming economy.
Sinopec Group signed an agreement to buy Canadian oil and gas explorer Daylight Energy Ltd for C$2.2 billion ($2.1 billion) in cash earlier this month. - Reuters.
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