Related: Sinopec looks to buy Addax Petroleum for US$8 billion | World’s 10 largest oilfield services companies | World’s largest publicly owned oil companies
Addax Petroleum Corporation has announced that it has entered into a definitive agreement with Sinopec International Petroleum Exploration and Production Corporation, that will see the Chinese energy company pay around US$46 a share for the Swiss-Canadian exploration and production outfit. The offer values Addax at around $7.2 billion.
The move by Sinopec comes after a fortnight of speculation regarding the identity of the company Addax were speaking to regarding a takeover. It is believed to be Addax’s interests in Iraqi Kurdistan that initially triggered Sinopec’s interest.
“We are pleased that Sinopec has recognised the highly attractive asset portfolio and exceptional team that we have assembled at Addax Petroleum,” the company’s president and CEO, Jean Claude Gandur, said.
“While Addax Petroleum will cease to be a publicly traded company, we look forward to continuing our business in the countries in which we operate for the benefit of all stakeholders,” he added.
Addax Petroleum shares a licence for the Taq Taq oilfield in Kurdistan and the recent thawing of relations between the Iraqi Oil Ministry and the Kurdistan Regional Government (KRG) has meant that the many companies operating in the area have become attractive acquisition targets for the major oil companies.
