Dechert Advises Sinopec on Strategic Divestment of Oil Assets in Argentina
Global law firm Dechert has advised Sinopec International Petroleum Exploration and Production Corporation (“SIPC”), on its overseas divestment of oil assets in Argentina to Compania General de Combustibles SA. Completed on 30 June 2021, the divestment marks one of the most high-profile transactions in the oil and gas industry since 2017, and the first prominent overseas divestment by a China state-owned oil and gas company.
SIPC is a subsidiary of China’s state-owned Sinopec Group, one of the world’s largest petroleum and petrochemical companies. SIPC engages in overseas oil & gas exploration, production investments and business operations, as well as the investment and operation of the Group’s overseas upstream projects. The strategic business unit operates over 20 oilfields in the San Jorge and Cuyo Basins in Argentina with assets covering some 4,600 square kilometres.
Xiao Yong, Hong Kong-based partner at Dechert, who led the completion of the deal, comments:
“We are delighted to have advised Sinopec on yet another milestone transaction, setting a precedent for other Chinese state-owned oil and gas heavyweights who are facing similar challenges as they navigate complex deals amid the evolving domestic and global regulatory and socioeconomic environment. Our team has significant experience in assisting clients, particularly Chinese state-owned enterprises with cross-border transactions in the energy and natural resources, mining and metals, oil and gas sectors, and this transaction will further boost our credentials in this area.”
The Dechert team advising on this transaction included partner Xiao Yong, counsel Nicholas Molan and associate Adam Schmelzer in Hong Kong.
Dechert previously advised Sinopec on a number of important transactions including the company’s recent US$11 billion strategic joint venture with SIBUR to develop the Amur petrochemical facility, which is projected to be the world’s largest basic polymer production facility. It also advised Sinopec Capital’s investment in LanzaTech, a global biotechnology company engaged in developing microbial catalyst technology to convert CO and CO2 into energy.
About Dechert
Dechert is a leading global law firm with 23 offices around the world. We advise on matters and transactions of the greatest complexity, bringing energy, creativity and efficient management of legal issues to deliver commercial and practical advice for clients.
