Talisman, Sinopec close $1.5bn UK deal

Talisman-Sinopec deal: UK North sea agreement has closed

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Kathrine Schmidt

 17 December 2012 18:21 GMT

Talisman Energy said Monday it had completed a $1.5 billion deal with Sinopec for a 49% interest in the Canadian producer’s North Sea business.

In the transaction announced in July, the Chinese producer will provide 49% of costs for the capital programme at the UK fields, which includes improving operating performance, performing infill drilling and "unlocking additional infrastructure-led exploration opportunities".

"The proceeds will be used to strengthen our balance sheet, fund our global capital programme and give us the financial flexibility to invest in future opportunities," Talisman chief executive Hal Kvisle said in a statement.

The venture will be renamed to Talisman Sinopec Energy UK Limited and incorporate Sinopec employees into the entity's Aberdeen-based office.

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