Sinopec Buys Marathon’s Angola Assets for $1.52 Billion

Sinopec Buys Marathon's Angola Assets for $1.52 Billion

China Petroleum & Chemical Group, better known as Sinopec, has announced it has reached an agreement with Marathon Oil to buy the U.S. company’s stake in Block 31, offshore Angola.

The Chinese company which, according to Forbes, employs 376,201 people, will pay $1.52 billion for the transaction. Marathon oil owns a 10% share in the BP-operated block.

The transaction is subject to the Chinese and Angolan government authorities.

Development drilling in Block 31 began in 2010, and first production was in the fourth quarter of 2012. Net production is expected to reach a plateau of 14 net mbbld in the first half of 2014 and remain at that level for approximately three years.

The partners in the block are BP Exploration Angola with 26.67 percent and operatorship, Sonangol E.P. with 25 percent, Sonangol P&P with 20 percent, Statoil Angola A.S. with 13.33 percent and SSI 31 Ltd with 5 percent.

 

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Offshore Energy Today Staff, June 24, 2013