CALGARY, Canada – Talisman Energy has completed its joint venture transaction with Addax Petroleum UK, a subsidiary of China Petrochemical Corp (Sinopec Group). This follows receipt of UK government and regulatory approval.
Hal Kvisle, president and CEO of Talisman Energy, said: “This transaction supports a number of Talisman’s key priorities. The proceeds will be used to strengthen our balance sheet, fund our global capital program and give us the financial flexibility to invest in future opportunities.
“Sinopec will now fund 49% of the UK capital program, allowing us to increase overall investment in the assets, which will lead to improved operational performance and a stronger UK North Sea business.”
The transaction gives Sinopec a 49% stake in Talisman Energy (UK) for $1.5 billion. Talisman will continue to hold 51% of the joint venture company, which will be renamed Talisman Sinopec Energy UK.
The partners will continue investment in asset integrity and improving operating performance, as well as speeding up infill drilling, identifying tieback opportunities and implementing new projects to extend field life and defer decommissioning.
Sinopec Group will appoint personnel for key positions to strengthen the existing North Sea team. The joint venture company is based in Aberdeen, with 564 full-time employees and about 1,950 contractor personnel.
Talisman has operated and non-operated interests in 46 fields, and operates 11 offshore installations and an onshore terminal.