| SHANGHAI, Sept 13
SHANGHAI, Sept 13 Privately run CEFC China
Energy has agreed to acquire a 35 percent stake in oil blocks in
Chad from Taiwan's state-owned Chinese Petroleum Corp for about
$110 million, according to CEFC company executives.
The deal, although small, marks CEFC's first completed
transaction in upstream oil exploration and production as it
aims to build a vertically integrated energy business that also
includes oil refining and fuel retailing, two company officials
Production from the three oil blocks in Chad is expected to
start by end-2017 or early 2018, with initial output at 6,000
barrels per day (bpd), with the potential to rise to 20,000 bpd
"These are types of assets that large oil firms tend to
overlook. But for us, it's a small but very good start, with
attractive returns," said a CEPC official, who declined to be
named due to company policy.
A company spokesperson confirmed the deal, adding that the
agreement was signed on Sept. 2 in Shanghai between CPC and CEFC
subsidiary CEFC Hainan Intl Co. Ltd.
Shanghai-headquartered CEFC has over the past couple of
years lined up preliminary deals for equity oil production in
Kazakhstan, Russia and Abu Dhabi, but Chad acquisition was the
first to be finalised.
(Reporting by Chen Aizhu; Editing by Richard Pullin)