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China’s Sinopec Acquires 20% of Total Nigeria Oil

By on November 20, 2012


A Sinopec Fuel Station in Beijing

After much rumours, feelers and speculations it has now   been confirmed that Chinese Oil firm Sinopec has acquired 20% share and stock of the French giant Oil firm Total Nigeria for $2.5 billion(2.0 billion euros).

The deal announced on Monday sees the Usan Oil well which is part of the Oil Mining lease OML 38 bloc go to the Asian tiger multinational in principle of the transaction.

Mr Yves Louis Daricarrere the President of the Upstream sector of Total stated that the transaction with Sinopec is in line with its Procedures for its management of portfolios under its operations.

He believed it was a timely decision that will enable the energy company re-strategize its goals and production objectives on its priority material resources that presents vast potentials for economic divestment and increased profitability.

The Usan Oil well is a joint ownership venture of Total alongside  US giants Chevron , Exxon Mobil and Canadian company Nexen Oil and Gas firm, a lucrative asset which has been in production since February.

If the operation is approved by the Nigerian authorities the deal will once again bolster the Chinese Invasion of the Africa Oil and Gas market, and will also follow the path of Addax who sold its valuable asset and Oil stake to Sinopec last year.

Chinese Energy companies are aggressively seeking new oil  and gas reserves  from regions like Africa, North America and Europe, in order to meet the demands of being the World’s second Largest economy and a high domestic consumption.
Assets sold accounts for about 10% of the total output of the French Oil Company operations in Nigeria, which is calculated at about 287,000 barrels per day  as at 2011. 

In September, Total Nigeria signified its intention to begin the sale of its assets in a strategic programme that will run between the year 2012  and 2014.