Sinopec Acquires Stake in Devon's US Shale Assets

Sinopec said Saturday that it has purchased about 33% equity in five shale gas assets of Devon Energy. The assets are based in the US and Sinopec’s purchase cost is about $2.44 billion.

The blocks are located in Niobrara, Mississippian, Ohio Utica Shale, the Michigan Basin and Tuscaloosa Marine Shale.

This is Sinopec’s maiden moves in the US oil and gas exploration space and is a move to further expand in the unconventional energy business.

Sinopec has made a $732-million cash payment and will pay the remainder in the form of a drilling carry. The entire $1.71-billion-carry will be realized before the end of 2014, Sinopec said.