SINOPEC SSC (01033.HK): Wholly-Owned Subsidiary to Acquire 50% of Mexico DS for USD 4 Million, with Follow-on Investment of up to USD 212 Million
NewTimeSpace News: On 17 August 2026, Sinopec Oilfield Service Corporation (stock code: 01033) announced that its wholly-owned subsidiary, Sinopec International Petroleum Service Corporation (SIPSC), together with its Mexico subsidiary, plans to acquire the 50% equity interest in DS Servicios Petroleros, S.A. de C.V. (Mexico DS) held by DIAVAZ for USD 4 million, together with the 0.01% interest in the EBANO project held by DIAVAZ's wholly-owned subsidiary D&S Petroleum, S.A. de C.V.; following the acquisition, SIPSC will provide follow-on investment of up to USD 212 million (including abandonment costs) to the EBANO project in Mexico according to project progress and funding needs.
Mexico DS is a joint venture of the company, 50% held by SIPSC and 50% by DIAVAZ, serving as the operator of the EBANO project and responsible for crude oil production of the EBANO oilfield. Upon completion of the acquisition, SIPSC and its Mexico subsidiary will hold 99% and 1% of Mexico DS respectively, indirectly obtaining a 55% interest in the EBANO project, with Mexico DS consolidated into the company's reporting scope. The consideration will be paid in instalments, with the first payment of USD 3.4 million released at closing and the remaining USD 0.6 million retained as escrowed compensation funds to be released one year after the closing date.
The EBANO oilfield is located in the Tampico Basin of the western central Gulf of Mexico coast, covering an area of 1,569 square kilometres. Discovered in 1903, it is a fractured-porosity carbonate heavy oil reservoir. Based on existing seismic evaluation, the oilfield holds petroleum geological reserves of 4.92 billion barrels (approximately 743 million tonnes) with an overall recovery factor of 6.84%; the deeper KTS layer contains additional petroleum resources of approximately 351 million barrels (about 53 million tonnes), and the deeper Jurassic formations also offer exploration potential. As partner DIAVAZ suffered consecutive losses and was unable to invest on an equal basis, the EBANO development plan had been postponed several times; the transaction will leverage Sinopec's integrated geological-engineering advantages to optimise the company's business layout in Mexico.
The board has approved the relevant resolutions. The acquisition does not constitute a connected transaction nor a major asset restructuring; the transaction does not meet the thresholds requiring shareholders' meeting approval under the listing rules of the Shanghai and Hong Kong exchanges, but is still subject to shareholders' meeting approval under the company's internal control management system. Completion of the acquisition is subject to the satisfaction or waiver of a series of conditions precedent, including amending provisions in Mexico DS's articles of association restricting the nationality of equity transferees, obtaining approvals or permits from relevant government authorities at home and abroad, written consent from project partners and bank creditors, and shareholders' meeting approval; uncertainty remains as to whether and when these conditions will be satisfied.
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