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Total sells Nigeria oil stake to China's Sinopec
BBC ^ | 19 November 2012 | no byline

Posted on 11/26/2012 10:39:52 AM PST by Lorianne

Total has announced the sale of its 20% stake in a Nigerian offshore oilfield to the Chinese state-owned Sinopec.

The French oil firm said its Chinese counterpart was paying $2.5bn (£1.6bn) for the stake in the OML 138 oil block.

The block includes the Usan oilfield, which began producing in February, and is jointly owned with Chevron, Exxon and Canada's Nexen.

Total said in September it aimed to sell $15bn-$20bn in oil assets by 2014 to raise cash for new projects.

The sale, which will be paid for in cash, still needs to be approved by the Nigerian authorities.

The Nigerian state oil company, NNPC, holds the concession on the oilfield.

"Usan accounts for less than 10% of the group's equity production in Nigeria," said Yves-Louis Darricarrère, who heads up Total's oil drilling business.

"This sale of an asset operated from a minority position will allow us to focus our resources on the material growth opportunities in Total's portfolio."

Sinopec's purchase is just the latest example of China buying up commodities and developing mineral resources in Africa.

However, it comes at a time when the Chinese economy has slowed its rapid growth. Last month, Sinopec reported a drop in profits in the three months to September, due to weak Chinese demand for petrochemicals.

(Excerpt) Read more at bbc.co.uk ...


TOPICS: Business/Economy; Foreign Affairs
KEYWORDS: energy

1 posted on 11/26/2012 10:39:58 AM PST by Lorianne
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To: Lorianne
Isn’t it funny how in 1974, we were going to run out of oil in 40 years!
2 posted on 11/26/2012 10:45:23 AM PST by justrepublican (Screaming like a "Vexatious requester" at a Wellstone memorial...........)
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To: Lorianne

Nigeria is a hell-hole for energy companies, worst place on earth to operate.


3 posted on 11/26/2012 10:53:19 AM PST by TexasCajun
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To: Lorianne
These foolish Chinese haven't been listening to President Obama—”Oil is the fuel of the past.”
4 posted on 11/26/2012 11:01:23 AM PST by Brad from Tennessee (A politician can't give you anything he hasn't first stolen from you.)
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To: TexasCajun
It's unusual for the Frenchies to show some good sense...
5 posted on 11/26/2012 11:12:43 AM PST by Eric in the Ozarks (In the game of life, there are no betting limits)
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To: TexasCajun
Nigeria is a hell-hole for energy companies, worst place on earth to operate.

That's probably why they sold out to China. Any Nigerian administration that tries to steal China's investment can expect a demonstration of severe displeasure from the ChiComs.

6 posted on 11/26/2012 11:20:29 AM PST by PapaBear3625 (You don't notice it's a police state until the police come for you.)
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