China Petroleum &Chemical Corporation, or Sinopec Corp., has signed a contract with American multinational energy corporation Chevron Corporation to jointly develop the Gendalo-Gehem natural gas project in Indonesia, according to reports Thursday.
Sinopec will infuse $680 million for a 18-percent-stake in each of the Rapak, Ganal and Makassar Strait deepsea blocks of the project. The project is expected to produce up to 1.1 billion cubic feet of natural gas per day as well as 31,000 barrels of condensate.
The deal, inked in Singapore on Tuesday, still pends approval from both the Chineseand Indonesian governments, according to reports.
It (the deal) marks the latest push by Chinese companies to secure overseas energy assets, and comes days after China National Offshore Oil Corporation (CNOOC)'s joint venture in Argentina paid $7.06 billion to take full control of the country's second-biggest oil and gas producer from BP.
Sinopec and Chevron plan to round up further cooperations, one of which being the development of shale gas in China, which remains under discussion.
Sinopec will infuse $680 million for a 18-percent-stake in each of the Rapak, Ganal and Makassar Strait deepsea blocks of the project. The project is expected to produce up to 1.1 billion cubic feet of natural gas per day as well as 31,000 barrels of condensate.
The deal, inked in Singapore on Tuesday, still pends approval from both the Chineseand Indonesian governments, according to reports.
It (the deal) marks the latest push by Chinese companies to secure overseas energy assets, and comes days after China National Offshore Oil Corporation (CNOOC)'s joint venture in Argentina paid $7.06 billion to take full control of the country's second-biggest oil and gas producer from BP.
Sinopec and Chevron plan to round up further cooperations, one of which being the development of shale gas in China, which remains under discussion.
