Talisman Finalizes $1.5B North Sea Deal
The proposed joint venture transaction between Talisman Energy and China Petrochemical Corporation's (Sinopec Group's) indirect wholly owned subsidiary Addax Petroleum UK has received government and regulatory approval, Talisman said in a statement Monday.
Sinopec Group has acquired a 49 percent equity interest in Talisman's UK North Sea business for $1.5 billion, while Talisman will continue to hold 51 percent of the joint venture company. The agreement also calls for Talisman Energy (UK) Limited to be renamed Talisman Sinopec Energy UK Limited.
The joint venture's focus will be to continue investment in asset integrity and improve ongoing operating performance as well as accelerating infill drilling, unlocking additional infrastructure-led exploration opportunities and executing major projects, allowing field lie to be extended and decommissioning deferred.
While the UK North Sea will comprise a smaller portion of Talisman's overall portfolio, it remains an important part of the company's North Sea business, Talisman said in a statement.
The transaction supports a number of Talisman's key priorities, said Talisman President and CEO Hal Kvisie in a statement.
"The proceeds will be used to strengthen our balance sheet, fund our global capital program and give us the financial flexibility to invest in future opportunities."
The joint venture company is based in Aberdeen and employs 564 full time employees, with approximately 1,950 core contractors.
Talisman first entered the North Sea in 1994 and holds operated and non-operated interests in 46 fields. The company also operates 11 offshore installations and an onshore terminal.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Operates 8 Offshore Rigs
- Strong Upstream Performance from European Majors (Jul 28)
- PETRONAS, PetroVietnam Extend PM3CAA PSC in Malaysia-Vietnam Waters to 2027 (May 10)
- Repsol Significantly Scales Back Upstream Investment (Oct 15)
Company: Sinopec more info
- Lead a Chinese Oil Giant and Get a Fraction of Your Peers' Pay (Dec 27)
- Report: Quarter Of Oil Refineries Risk Closure Under Climate Goals (Nov 02)
- Sources: China's Sinopec Mulls US Oil Projects Ahead Of Trump's Visit (Oct 31)
Company: Addax more info
- Chinese-Owned Oil Firm Addax Shuts Offices After Swiss Bribery Case (Aug 07)
- North Sea Decom: 'Campaign Approach' Required to Drive Down Costs (Sep 15)
- Addax Extends Yinson's FPSO Charter Contract for $129M (Oct 20)