Shell has sold it 80% stake in Petcen Cameroon to Chinese energy giant Sinopec.
The acquisition of the majority stake in Petcen Cameroon Co was completed by the Chinese state-owned oil producer as Royal Dutch Shell continues to focus its business and rationalise its core assets.
Addax Petroleum, a subsidiary of Sinopec Group, agreed to pay $583 million to Shell Overseas Holdings Ltd. for the stake in Petcen Cameroon, which owns interests in twelve exploration blocks off Cameroon. The remaining 20% will stay in the hands of Cameroon's National Hydrocarbons Corp (SNH which operates two of the twelve blocks.
The deal marks the first acquisition of oil production assets by Sinopec in the developing country. Sinopec, China's second-largest oil producer and the top refiner in Asia, expects to yield 11,900 barrels of equity oil output per day, or 600,000 tons a year, from the joint venture.