China Petrochemical Corporation, also known as Sinopec, has agreed a deal to buy U.S. firm Marathon Oil Corporation's stake in an Angolan oil and gas field.
Sinpoec will pay $1.52 billion for Marathon's 10 percent stake in Block 31.
In a statement Marathon said its "subsidiary, Marathon International Oil Angola Block 31 Limited, has entered into a definitive agreement to sell its 10 percent working interest in the Production Sharing Contract and Joint Operating Agreement in Block 31 offshore Angola to SSI Thirty-One Limited (Sonangol Sinopec International)".
"This transaction highlights the shareholder value we have created through exploration success in Angola, as well as our commitment to financial discipline and efforts to profitably grow the Company," said Clarence P. Cazalot, Jr., Marathon Oil chairman, president and CEO. "We expect to use the proceeds from this sale to repurchase shares, strengthen the balance sheet and for general corporate purposes."
The deal is subject to approval by Chinese and Angolan governments.
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