Soco Sells Mongolian Assets to PetroChina Subsidiary
SOCO has entered into an agreement for the sale of its Mongolian interests to Daqing Oilfield Limited Company, a subsidiary of PetroChina.
- Disposal of SOCO's Mongolian Assets to Daqing for total consideration of approximately US$93 million
- The total consideration comprises of a cash consideration of US$30 million payable on Completion; US$10 million payable in cash 18 months later (in escrow from Completion); a cash payment of approximately US$53 million based on production above 27.8 million barrels from January 1, 2005
The Agreement is consistent with SOCO's strategy of rationalizing its portfolio by monetizing non-core assets, with proceeds further strengthening SOCO's ability to participate in further opportunities.
The disposal is subject to certain conditions, including approval of SOCO shareholders.
Ed Story, President and CEO of SOCO, said
"This transaction with Daqing is particularly beneficial as it provides SOCO with additional capital to deploy toward projects that can further enhance our core portfolio and is seen as the first step in greater co-operation with a Chinese industry participant who could have further interests in expanding its international role."
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Company: SOCO International more info
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