Sinopec's JV raises stake in Angola deepwater block

6/24/2013

Sinopec's JV raises stake in Angola deepwater block

BY WAYNE MA

BEIJING -- Sinopec Group said Friday that one of its joint ventures has purchased Marathon Oil’s entire 10% stake in a deepwater block off Angola for $1.52 billion.

Sinopec's JV in Angola, known as Sonangol Sinopec International, will now have a 15% stake in the asset, known as Angola Block 31, it said. The deal will raise the JV’s total output to as much 14,600 bbl a day, it added. China Sonangol International Holding holds the other 50% in the JV.

Sinopec's latest deal is part of its efforts to seek returns abroad, primarily in oil and gas E&P, as heavily regulated domestic fuel prices have squeezed its profits at home in China. Sinopec's main expertise is in refining and petrochemicals.

Sinopec has said it plans to more than double its share of output from overseas projects to more than 50 million tons of oil equivalent a year by 2015, from 22.88 million in 2011.

Meanwhile, Angola Block 31 has several stakeholders, including subsidiaries of BP, Angola's Sonangol and Statoil. The block, which began production in December, is operated by BP and has an estimated 533 million bbl of "2P reserves," which carry a 50% confidence level of recovery.

BP said in January that one of its projects in Angola Block 31 was expected to produce as much as 70,000 bopd. The project's output is expected to rise to as much as 150,000 bopd this year, it added.

Dow Jones Newswires

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