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Sinopec and Apache started with strategic partnership

Staff writer |
Sinopec Group and Apache Corporation announced that Sinopec has acquired one-third share of Apache's Egyptian oil and gas business for $3.1 billion.

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Sinopec and Apache announced a global strategic partnership in August, with Sinopec buying this share in Apache's Egyptian business as the first step.

As the first step in this partnership, Apache will receive $3.1 billion in cash, subject to customary closing adjustments, in exchange for Sinopec gaining a 33 percent minority participation in Apache's Egypt oil and gas business. Apache will continue to operate its Egypt upstream oil and gas business.

Given the sustained growth of its operations in Egypt, Apache has conducted an extended evaluation of a strategic partnership to ensure its ability to continue to deliver growth opportunities there while enhancing Apache's portfolio balance. The new partnership results from several months of joint efforts between Apache and Sinopec.

Net production from Apache's Egypt operations averaged 100,000 barrels of oil and 354 million cubic feet (MMcf) of natural gas per day in 2012. Gross production during the period averaged 213,000 barrels of oil and 900 MMcf of gas per day. Apache's exploration and production operations, which are located in remote, unpopulated areas, remain unaffected by political events in the region.

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