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| Sinopec | |
| Size | Acquisition of a 49% equity interest in Talisman’s UK subsidiary for $1.5 billion in cash |
| Advisers | HSBC (Sinopec), JP Morgan (Talisman) |
| return to the Asia Deals of the Year index | |
Sinopec’s acquisition of a 49% equity interest in Talisman’s UK subsidiary for $1.5 billion in cash stood out not least because it was among the first high-profile acquisitions by a Chinese state-owned enterprise in the North Sea, one of the world’s most important oil and gas fields. The joint-venture structure allowed Sinopec to benefit from the well-established capability of TEUK in mature field operations and field-life extensions, with a rapid execution timeline. The transaction gave Sinopec a North Sea presence in line with the stated group strategy of establishing regional hubs across international oil and gas provinces. HSBC acted as the sole adviser to Sinopec, while JPMorgan advised Talisman. For HSBC, internal teams combined across the franchise – including Beijing, Hong Kong, Calgary and London – to implement the deal, demonstrating the need for a global team on a transaction of this nature.
The deal closed in December and has played a part in improved investor confidence in the myriad opportunities in North Sea expansion. According to a study by Deloitte, the North Sea oil province, which had been in decline, has benefited from recently unveiled tax relief. Deal activity last year was more than 30% up on 2011. Deloitte said interest in field development was at a 10-year high and the UK government has granted more than 20 field development proposals.
