Total of France has agreed the $2.5bn sale of a minority stake in a Nigerian oilfield to Sinopec of China.
The deal, which is subject to approval from Nigeria's government, will see the Chinese state-controlled oil group acquire Total's share of production in the Usan field in deep waters off the Niger Delta.
Following the transfer of Total's 20 per cent share in the block, Sinopec will take command of output running at 24,000 barrels of oil a day. The Chinese company's recoverable reserves will be boosted by 100m barrels.
"This transaction will add a sizeable asset to Sinopec's portfolio and provide the company with another opportunity to acquire and develop experience and expertise in deepwater exploration and production," the Chinese oil group said in a statement.
In developing the field, Sinopec will join forces with local subsidiaries of Chevron and ExxonMobil of the US, both of which hold 30 per cent stakes, and Nexen of Canada, which holds a 20 per cent stake.
Sinopec already holds oil interests in Nigeria as well as Cameroon and Gabon in west Africa following its $7.2bn takeover of Addax Petroleum of Switzerland in 2009.
The deal adds to the $5bn of assets that Total has sold so far this year and brings it closer to a disposal target of $15bn-$20bn by 2014.
Total is also looking to sell Total Infrastructures Gaz France, a gas transport business in southwest France, for €2bn-€3bn, with EDF among those showing an interest.