Talisman sells 49% stake in U.K. unit to Sinopec for $1.5-billion
Monday, July 23, 2012
CALGARY
Talisman Energy is selling a 49-per-cent interest in its U.K. division to Chinese firm Sinopec Corp. for $1.5-billion.
The Calgary-based company says the joint venture will focus on investment in the operating performance of the assets, including drilling and exploration opportunities.
Talisman says it will continue to handle operations, while Sinopec will be able to appoint staff to key positions.
“Collectively, we will invest more in the UK than Talisman would have on its own, leading to a stronger, more sustainable business,” said Talisman president and CEO John Manzoni.
“We are reducing our working interest and capital spend in the U.K. business by approximately half, allowing us to focus on and fund growth areas within our portfolio. This brings our total divestment proceeds to approximately $2.5-billion so far this year.”
Mr. Manzoni said the company plans to use about $500-million from the proceeds to buy back shares.
Talisman U.K., based in Aberdeen, Scotland, has 564 full-time employees and about 1,950 contractors.
The transaction is expected to close by the end of the year, once the companies receive regulatory and government approval.
