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China’s state-backed Sinochem is planning to sell its 40% stake in the Wolfcamp joint venture with Exxon Mobil (NYSE:XOM) in the Permian Basin, hoping to fetch at least $2B, and has hired Barclays as an advisor on the potential sale, Reuters reported Friday.
Exxon (XOM), majority owner and operator of the JV, has the right of first refusal in the sale, the report said.
Sinochem acquired the stake from Pioneer Natural Resources in 2013 for $1.7B, when production on the ~83K net acres under the JV totaled ~10K boe/day; recent output from the land reportedly averaged more than 44K boe/day, with ~75% oil.
The Wolfcamp JV is Sinochem’s largest oil and gas producing asset outside China, according to the report.
