Sinopec acquires a 33% stake in Apache Egypt for US$3.1 billion
Sinopec will acquire 33% of Apache's Egyptian portfolio for US$3.1 billion. Apache has reported entitlement production of 100,000 barrels of oil and 354 million cubic feet of gas per day, from the portfolio which is focused on the prolific Western Desert. We estimate entitlement 2P reserves of around 576 million boe. Our $3.07 billion base case valuation is in line with the consideration paid, and implies a long term oil price of US$87/bbl. The deal is the largest in the Middle East ...