Sinopec Group, the largest Asian oil refiner, had announced last Thursday that it had entered into an agreement to sell its 30% shareholdings in an oil and gas block located in Myanmar. The Chinese firm is selling the block to Taiwan's CPC Corp.
This is but one of a series of deals between the neighboring state owned energy corporations. Sinopec, in its announcement, provided no financial details of the block D transaction and the finalization is still dependent on regulatory approvals. There was also no estimation as to the reserves still within the energy block to be sold.
The block was taken over by Sinopec when it acquired full exploration rights from Myanmar Oil and Gas Enterprise back in 2004. The block is spread of 12,000 square kilometers near Myanmar's city of Mandalay, its second largest after the capitol city.
According to CPC's website, there have been three oil and gas discoveries at the six different exploration wells that have been established in the onshore block.
Last March, CNPC's parent, PetroChina had entered into a joint exploration venture agreement with CPC to search for oil in Niger. In another deal, CNOOC agreed to a supply agreement with a Taiwanese company for liquefied natural gas.
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