Sinopec agrees $2.5 billion oil shale deal

China Petrochemical Corporation Sinopec has started the new year with yet another significant international acquisition, this time agreeing to invest up to $2.5 billion for a one-third stake in five US oil shale projects owned by Devon Energy.

Sinopec International Petroleum Exploration and Production Corp, a wholly owned subsidiary of state-owned Sinopec, will pay Devon $900 million in cash for its stake in the projects 1.2 million acres covering the Tuscaloosa Marine Shale, the Niobrara, the Mississippian, Ohio Utica Shale and the Michigan Basin and as much as $1.6 billion in the form of a drilling carry that will fund 70% of Devon’s capital requirements and results in Sinopec paying...