Noble Energy plans China oil field stake sale, could fetch $200M-$300M

Noble Energy (NBL) has hired Lazard to sell its majority stake in an oil field it owns with Sinopec (SNP) off the coast of northeastern China in a deal that could fetch $200M-$300M, WSJ reports.

NBL holds a 57% stake in the Chengdaoxi field, which currently produces ~4K bbl/day of crude oil; SNP holds the remainder.

NBL's stake is said to have attracted interest from a wide field that includes several medium-size energy companies.

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Comments (2)
  • User 353732
    , contributor
    Comments (5166) | Send Message
    This is the right thing for NBL which is too internationally dispersed for its size. NBL would be more attractive to retail investors if it focused much more on US low permeability oil and gas basins and further sold down its positions in Cypress and Israel.
    21 Feb 2014, 12:40 PM Reply Like
  • Callum Turcan
    , contributor
    Comments (1120) | Send Message
    I agree, there is no reason why Noble Energy needs to own a stake in an offshore (technically onshore) Chinese oilfield. The DJ Basin back in America is where Noble Energy can churn out great, stable returns. While the DJ Basin holds a large amount of liquids, there is still going to be some dry gas production from the region. With US natural gas prices back above $5.50 mmBtu, Noble Energy can finally get a decent price for its US gas output. Happy to see this news today and for the stock bounce, moved my options into the black after being in the red.
    24 Feb 2014, 01:17 PM Reply Like
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