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Friday, Oct 25
In rare China sale, Sinopec seeks partner in Canada shale
- Sinopec (SNP) says it wants to sell half of its two biggest shale gas acreages in Canada to spread costs and accelerate their development, since the drilling needed to monetize the resource is too heavy for it to handle alone.
- SNP is looking for an equal equity partner for Montney and Duvernay, two shale gas plays totaling ~500K acres in western Canada whose combined recoverable reserves are believed to total in the tens of trillions of cubic feet.
- A sale of an overseas asset would be a rare move for one of China's state-owned energy companies, which have spent hundreds of billions of dollars investing in hydrocarbon resources from North America to Australia to secure China's energy needs.