China's Sinopec steams in

By Rob Watts

 26 July 2012 22:59 GMT

Talisman Energy has agreed to sell a 49% interest in its UK North Sea business to China’s Sinopec in a $1.5 billion deal that will lead to investment across the largely ageing portfolio, writes Rob Watts.

Announced within hours of CNOOC’s bid for Nexen, the two deals will give Chinese companies control of about 7.5% of total UK North Sea production.

Talisman will remain as operator in the joint venture, to be headed by Geoff Holmes, currently senior vice president at Talisman Energy UK. No job cuts are expected.

Holmes told Upstream the deal will reduce Talisman’s share of capital expenditure and decommissioning liabilities, leading to more investment and improved efficiency.

The venture also aims to drill infill wells, including around its Clyde and Claymore facilities, as well as carry…

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