19th November, 2012
China has increased its hold of Nigeria’s oil industry with its purchase today of Total’s 20 per cent stake in a Nigerian offshore bloc.
Sinopec, China’s state oil company, made the purchase at a cost of $2.5 billion.
The OML 138 bloc, which includes the Usan oil well already in production since February, is co-owned by US groups Chevron and ExxonMobil and Canadian company Nexen.
In September, Total announced an asset sale programme worth $15 to $20 billion to be carried out between 2012 and 2014. With the Nigerian divestment, Total has so far raised $7.5 billion.
“The transaction is aligned with Total’s active portfolio management,” said Yves-Louis Darricarrere, President Upstream at Total in a statement
“Usan accounts for less than 10 percent of the group’s equity production in Nigeria. 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,” he said.
The operation is subject to approval by Nigerian authorities, Total added.
Following the announcement, Total shares rose 1.77 percent to 37.63 euros in afternoon trading, in line with the progression of the Paris CAC 40 index of leading shares.
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