CHINA'S state-owned chemical trader Sinochem Corp has completed a deal to buy Soco International Plc's Yemen unit for US$465 million as it further expands into upstream oil exploration business.
Sinochem bought 100 percent in Soco Yemen Pty Ltd from London-based Soco International, according to a statement on the Website of the State-owned Assets Supervision and Administration Commission. The transaction was completed on April 21.
Soco Yemen has a 16.79 percent indirect interest in the East Shabwa Development Area, or Block 10, in Yemen, according to the SASAC statement, dated April 25.
The remaining recoverable oil reserves in East Shabwa entitled to Soco Yemen was about 39 million barrels at the end of last year. In the first quarter, the block's daily production averaged 40,000 barrels, among which 6,714 barrels were entitled to Soco Yemen, SASAC said.
Sinochem aims to boost oil and gas output to 4 million tons by 2010 from 1 million tons.
The Beijing-based company started overseas oil exploration in 2002 to secure energy for the fast growing Chinese economy, and currently has projects in countries including Ecuador, Tunisia and the United Arab Emirates.
Sinochem acquired a stake in an offshore field in China's Bohai Bay for US$218 million in February last year, making its maiden foray into domestic oil exploration.