Jan. 4, 2012 (China Knowledge) - Sinopec Group, the parent company of Sinopec<600028
>, Asia's largest oil refiner, announced yesterday that its wholly-owned subsidiary Sinopec International Petroleum Exploration & Production Corp, has agreed to invest US$2.5 billion to buy one third of five shale fields from Devon Energy Corp.
The Chinese oil giant will pay Devon US$900 million at closing for the 33% shareholding in the five fields, which are located in Ohio, Oklahoma, Louisiana, Michigan and the mid-continent.
In addition, Sinopec will pay US$1.6 billion to drill wells in these fields over the next three years. In 2012, the companies plan to drill about 125 wells in the five fields.
The transaction, which marked Sinopec's first foray into the U.S., is expected to help the Chinese company learn drilling techniques and use them in shale gas production in China.