Thursday, January 31, 2013

West Texas Energy Turning Chinese

The Deal reported:

Dallas oil and gas explorer Pioneer Natural Resources Co. said Wednesday it agreed to sell 40% of its 207,000 net acres in West Texas' Wolfcamp Shale play to Sinochem Petroleum USA LLC, a unit of China's Sinochem Group, for $1.7 billion, way above analysts' projections.

The price includes a $500 million cash payment and $1.2 billion for part of Pioneer's share of drilling and facilities cost over six years.

It's not clear from the article if CFIUS approval is needed.

Who knew West Texas would turn Chinese.  They built transcontinental rail, which Texans are refurbishing.  How long before rail lines send U.S. energy to China?