Sinopec agrees Nigerian oil deal

China Petrochemical Corp, also known as Sinopec Group, has agreed to buy a block of oil in Nigeria for $2.46 billion.

Sinopec, Asia's largest petroleum and petrochemical company, reached the agreement with France's Total ADR.

Under the deal, Sinopec will acquire all of the 20 percent stake Total holds in the block. The deal is subject to regulatory approval, the company announced on Tuesday.

The block lies in the Niger Delta basin, off West Africa, with water depths ranging from 500 to 1,000 meters. It covers 906 square kilometers.

With its 20 percent stake in the block, Total assumes the role of operator. After the purchase, Sinopec will have access to around 100 million barrels of recoverable resources.

The field went into production in late February with steady operations and output. Its current output is about 24,000 barrels of oil a day and this is expected to rise to 26,000 barrels a day for Sinopec -its highest production level.

"Sinopec has been committed to building a mutually beneficial relationship with international peers, while expanding business overseas," the company said. "The agreement with Total gives the company a chance to participate in the development of the oil industry in Nigeria, and provide the region with crude oil."