China Petrochemical Corp., also known as Sinopec, signed a $2.5 billion deal with Devon Energy Corp. (NYSE: DVN) to help develop four shale fields and a limestone field in Ohio, Michigan, Oklahoma, Louisiana and the midcontinent.
Sinopec agreed to pay Devon $900 million at closing for a 33 percent stake in the five fields, according to The Wall Street Journal. Sinopec will also pay $1.6 billion to drill wells in the areas over the next three years.
Industry experts were quoted as saying in the article that Chinese companies can learn drilling techniques and adapt them for shale formations in China, as well as diversify global investments by buying potentially lucrative assets.
France-based Total SA on Jan. 3 paid $2.32 billion for a 25 percent stake in Chesapeake Energy’s shale discovery in Ohio.
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