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Asia’s largest oil refiner announced on monday that its wholly-owned subsidiary Sinopec International Petroleum Exploration and Production Corporation has signed an agreement with Chesapeake Energy Corporation to buy 50 per cent of the latter’s shares of an oil and gas reserve in northern Oklahoma.
The acquisition, which will cost Sinopec $1.02 billion for a 425,000-acre (171,991 hectares) limestone oil reserve, represents the largest such share purchased by a Chinese enterprise.
Under the agreement, the two parties will share future exploratory spending for the project based on their holdings, with Chesapeake serving as the operator.
The move came after the company’s previous $2.5 billion purchase of one-third of the Devon Energy Corporation’s gas reserves in 2012.
Both reserves are located in the Mississippi Basin and will generate a sound synergistic effect, Sinopec said.