Under the terms of the deal, Sinochem can produce 8,000 barrels a day of crude from the block, which flows a total 57,000 b/d. Repsol has a 55% stake in the block, while Taiwan's Chinese Petroleum Corp. has a 31% stake.
Sinochem is expected to sell the crude produced from the block both in China and in international markets.
Since starting production in 1994, the oilfield has produced an estimated 325 million barrels of crude. The deal marks another step for Sinochem in expanding its business into the upstream sector.
Earlier this year, Sinochem made its first overseas acquisition by taking over Atlantis, a unit of Norwegian oilfield service group Petroleum Geo-Services, for nearly $105 million.
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