OREANDA-NEWS. September 09, 2013. China Petrochemical Corp. agreed to pay USD 3.1 billion cash for a 33 percent stake in Apache Corp. (APA)’s Egyptian oil and gas business, marking the Chinese state-owned company’s third-biggest acquisition.

Apache will sell the stake and form a partnership with Sinopec Group, as the Beijing-based company is known, to develop upstream oil and gas projects, the Houston-based company said today in a statement. Apache will continue to operate the projects, according to the statement.

Buying the stake will give Sinopec a stake in an operation that produced an average of 100,000 barrels of oil and 354 million cubic feet of natural gas a day in 2012, according to Apache. Apache will use the proceeds to reduce debt, buy back shares and fund capital spending. The transaction is part of the company’s plan to sell USD 4 billion in assets by year end.

“Our successful exploration and development programs in Egypt have been an important contributor to both growth and cash flow for many years,” Apache Chairman and Chief Executive Officer G. Steven Farris said in a statement. “With today’s partnership, we are ensuring they can continue this contribution in the future,” Farris said.

Apache’s Egyptian exploration and production operations are located in remote and unpopulated regions and remain unaffected by political events in the region, the company said.

The transaction is expected to close during the fourth quarter. The deal is Sinopec Group’s biggest since 2010 purchase of Syncrude Canada Ltd., according to data compiled by Bloomberg.