Oil prices spiked on Wednesday…
As OPEC continue to talk…
The largest refiner in Asia, China’s Sinopec Group, has announced that it will buy Marathon Oil Corp’s share in an Angolan offshore oil and gas field for $1.52 billion.
Dependent on the approval of the Chinese and Angolan governments, Reuters reported that, a subsidiary of the giant Asian refiner, Sonangal Sinopec International Ltd., declared on Friday that they will buy Marathon’s 10% stake in the Block 31 field, increasing their own share to a total 15%.
Block 31 in Angola is run by BP, and according to Sinopec, is estimated to hold reserves of 533 million barrels of oil.
Related Article: Angola and Brazil Work Together on LNG Production
Chinese energy companies have been investing in energy projects and developments around the world in a search to secure energy resources to meet the growing demand of the world’s second largest economy.
In March, CNPC, another giant, Chinese energy company, agreed to buy a stake in an offshore natural gas field in Mozambique for $4.2 billion, and then last week announced it would buy 20% of Novatek’s $20 billion Yamal-LNG project in northwest Siberia.
Reuters claims that the $1.52 billion sale to Sinopec is part of Marathon’s $3 billion asset disposal target, that they hope will help them to create a healthier balance sheet, and fund other exploration and development projects in the future.
By. Joao Peixe of Oilprice.com
Joao is a writer for Oilprice.com