China's state owned petrochemical giant Sinochem (SHA: 600500) acquired a 40 percent in Wolfcamp, a well-known shale oil and gas field in the Permian Basin of Texas.
Pioneer Natural Resources (PXD) of Irving, Texas said this week that it sold a 40 percent stake in its Wolfcamp field for a total price of $1.7 billion. Sinochem's U.S. subsidiary signed the deal on Wednesday.
The transaction is expected to close during the second quarter of 2013, subject to customary governmental approvals. Under the agreement, Sinochem will acquire approximately 82,800 net acres of leasehold held by Pioneer for all Wolfcamp depths and deeper horizons, PXD said in a statement.
Scott Sheffield, Chairman and CEO, said in a statement that, "We are very excited to work with Sinochem, a global energy and chemicals leader, in the southern horizontal Wolfcamp Shale area, and are pleased that they share our confidence in accelerating the development of this large, oil-rich acreage position. This accelerated development will add significant production and reserves for Pioneer while enhancing shareholder value. It will also reduce our country’s dependence on foreign oil imports, create thousands of new U.S. jobs, further stimulate the Permian Basin economy and add significant tax revenues for use by local communities, schools, the state and the nation."
The two companies have also agreed to join forces to develop up to 86 horizontal wells in 2013, 120 in 2014, and 165 in 2015.
