Talisman and Sinopec to create joint North Seas venture

A Chinese investment of nearly £1bn in Britain's offshore oil and gas industry has been confirmed.

Talisman, based in Canada, is creating a joint venture with Sinopec, also known as the Chinese Petrochemicals Corporation.

As part of Talisman Sinopec Energy UK, it will now own and fund 49% of Talisman's UK operations.

The agreement to work towards the joint venture was announced in July.

Geoff Holmes, chief executive of the new joint venture, said: "Both shareholders are demonstrating their long-term commitment to the North Sea through investment in our UK assets.

"Talisman Sinopec Energy UK Limited will work to deliver maximum value through a continued focus on safety, extending the field life of our assets and attracting and retaining talented people across the industry.

"The focus of the joint venture will be to invest in improving the integrity and performance of our assets. Today represents an exciting milestone as we work together to create an exciting future in the North Sea."

Talisman Energy continues to operate independently in North America and South-East Asia.

Earlier this month, approval was granted in Ottawa for another Canadian company to be bought over by a Chinese energy firm. Nexen is being bought for £9.4bn, including the biggest stake in the large Buzzard field, located in the North Sea near Aberdeen.