China Petroleum Corp. Acquires Big Stake In U.S. Fields

China Petrochemical Corp. (Sinopec) has made a multibillion-dollar deal with Devon Energy Corp. for a one-third stake in five U.S. shale oil and gas fields.

Sinopec will pay Devon $900 million at closing that includes $300 million in reimbursements for money Devon already spent on acreage and drilling acquisition, according to a Devon spokesman. In addition, it will pay $1.6 billion to Devon in the form of a drilling carry expected to be realized by the end of 2014, according to news reports. This marks Sinopec’s first venture into the U.S. oil patch.