The proposed joint venture transaction between Talisman Energy and China Petrochemical Corporation's (Sinopec Group's) indirect wholly owned subsidiary Addax Petroleum UK has received government and regulatory approval, Talisman said in a statement Monday.
Sinopec Group has acquired a 49 percent equity interest in Talisman's UK North Sea business for $1.5 billion, while Talisman will continue to hold 51 percent of the joint venture company. The agreement also calls for Talisman Energy (UK) Limited to be renamed Talisman Sinopec Energy UK Limited.
The joint venture's focus will be to continue investment in asset integrity and improve ongoing operating performance as well as accelerating infill drilling, unlocking additional infrastructure-led exploration opportunities and executing major projects, allowing field lie to be extended and decommissioning deferred.
While the UK North Sea will comprise a smaller portion of Talisman's overall portfolio, it remains an important part of the company's North Sea business, Talisman said in a statement.
The transaction supports a number of Talisman's key priorities, said Talisman President and CEO Hal Kvisie in a statement.
"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."
The joint venture company is based in Aberdeen and employs 564 full time employees, with approximately 1,950 core contractors.
Talisman first entered the North Sea in 1994 and holds operated and non-operated interests in 46 fields. The company also operates 11 offshore installations and an onshore terminal.