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Chinese firm buys stake in US shale block

30th April 2012

China's largest crude oil refinery buys third of independent US natural gas and producers' shale gas assets

Sinopec looks to US oil and gas industry for business

Sinopec has bought up 33 per cent of the equity of Devon Energy Corp’s 5 US shale Gas assets for USD 2.44 billion.

The five shale Gas blocks owned by Devon are located in Niobrara, Mississippian, Ohio Utica Shale, the Michigan Basin and Tuscaloosa Marine Shale, Sinopec said in a statement.

The purchase marks Sinopec’s first move to enter the oil and gas exploration and development business in the US.

This acquisition will enable Sinopec to gain from Devon’s expertise in producing oil and gas from shale and other unconventional basins, said the company

Sinopec has made a USD 732 million cash payment and will pay the remainder in the form of a drilling carry, allowing the Chinese company to finance the drilling expenses of Devon during a defined period.