Sinopec Puts Up $2.2B For Stake In US Shale Projects

Law360, New York (January 3, 2012, 3:11 PM EST) -- Sinopec International Petroleum Exploration & Production Corp., a subsidiary of energy giant China Petroleum & Chemical Corp., will invest $2.2 billion for a stake in five exploratory oil shale projects owned by Oklahoma-based Devon Energy Corp., the companies announced Tuesday.

Sinopec will pay $900 million in cash for a one-third stake in the ventures and commit $1.6 billion to drilling costs, according to an announcement by Devon.

“This arrangement improves Devon’s capital efficiency by recovering our land and drilling costs to date and by significantly reducing...
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