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Thread: China's CNOOC and Sinopec Pay $1.3 Billion for Angola Oil

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[quote=MARRIE,373858]Marathon's partners have a first right of refusal on the 20% stake being sold, but sources suggest none of the parties is keen to increase exposure to the block right now. Standard Chartered Bank ran an auction for the stake on behalf of Marathon.

The U.S. company, which owns the stake through a subsidiary—Marathon International Petroleum Angola Block 32—put the 20% interest up for sale almost a year ago and analysts have speculated that Marathon was hopeful of a $2 billion price tag. However, the subsequent meltdown of financial markets had a cascading effect on commodity prices and valuations have continued to be negotiated between the parties, with some consensus emerging this summer. The deal is expected to close by the end of 2009.

Among other parties rumoured to be interested in the asset last year were India's state-owned oil company, the Oil and Natural Gas Corporation (ONGC).

CNOOC and Sinopec, which are both being advised by Credit Suisse, will create a 50:50 joint venture to make the acquisition. Sinopec already has an interest in an oil block in Angola, while this is CNOOC's first foray into the country. Angola is a key African source of oil for China, along with Nigeria, and sources say this deal could herald closer ties between the two countries.

Houston-based Marathon is an energy company engaged in exploration and production with operations across North America, Europe, Africa and Asia. It is the fourth-largest U.S.-based integrated oil company and the country's fifth largest refiner. 
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