Sinopec subsidiary, AED form joint venture

Australia-based producer AED Oil and Sinopec International Petroleum Exploration and Production Corp. (SIPC) have formed a joint venture.

This is to pursue exploration and development opportunities at AED's assets offshore Northwest Australia, including the Puffin and Talbot fields. SIPC, a subsidiary of China Petrochemical Corporation (Sinopec), will hold 60 percent joint venture interest in the AC/P22, AC/L6 and AC/RL1 fields, while AED will hold the remaining 40 percent. SIPC will be operator of the joint venture. The transaction values the assets at approximately US$929.4 million. AED will use proceeds from the transaction to retire debt, settle with its creditors and fund its joint venture interest and development opportunities. The transaction is expected to be finalized in the next two weeks, subject to third party consents by the Chinese government, Australia's Foreign Investment Review Board and the Northern Territory government.
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