Sinopec buys into Apache Egypt assets

Sinopec30 August 2013, News Wires – Chinese energy giant Sinopec has agreed to pay $3.1 billion in cash to US independent Apache for an equity stake in Apache’s Egypt business.

Apache said Sinopec will receive a 33% non-operating interest in its Egypt upstream business which in 2012 produced an average of 213,000 barrels per day of oil and 900 million cubic feet per day of gas.

The deal, which is subject to customary governmental approvals and is expected to close during the fourth quarter, is part of “a global strategic partnership to pursue joint upstream oil and gas projects” between the two companies, said Apache.

Apache chief executive Steven Farris said: “We are pleased to launch a global partnership with Sinopec, and to welcome them into our business in Egypt. Their technical expertise complements our 20 years of experience operating in Egypt and creates an alliance that will continue to explore and deliver the tremendous hydrocarbon resources in the Western Desert.

“Sinopec is an ideal partner for us, and we look forward to the growth and value generation ahead for both companies through the expansion of our collaboration to other projects,” he said.

Apache added that its Egypt exploration and production operations, which are located in remote, unpopulated areas, remain unaffected by political events in the region.

– Upstream

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