Canada's Talisman Energy Inc. announced Monday the sale of a 49-percent stake in its North Sea oil operations to China's Sinopec for $1.5 billion.
Talisman said in a statement the deal with Sinopec International Petroleum Exploration and Production Corporation will provide additional resources and energy to drill for oil in the region, while reducing its capital spending.
"The joint venture plans to invest to improve ongoing operating performance, as well as infill drilling, exploration opportunities and major projects, thereby extending field life and deferring decommissioning," it said.
Talisman also said it would use one-third of the proceeds of the sale to buy back shares in an effort to boost its share price.
The deal, announced on the same day as another state-owned Chinese firm, CNOOC, purchased Canada's Nexen, which also produces oil from Britain's North Sea, is expected to close at the end of 2012, subject to regulatory approval.