Sinochem to acquire 40% stake in US company’s shale assets

31 January 2013 05:59  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Sinochem announced on Thursday that it has signed an agreement with US-based Pioneer Natural Resources to purchase a 40% interest in its oil and natural gas assets in the southern Midland Basin Wolfcamp play for $500m (€340m).

Under the agreement signed on 30 January, Sinochem will acquire approximately 82,800 net acres of the oil and gas leasehold with development rights for all Wolfcamp and deeper horizons, according to a statement from Sinochem. 

In addition, Sinochem would spend $1.2bn to fund 75% of Pioneer Natural Resources’ share of drilling and completion costs in those horizons, the statement said.

Sinochem expects the transaction to be closed in the second quarter of this year, subject to customary governmental approvals.

($1 = €0.74)

By: Fanny Zhang
+65 6780 4359

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