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Wednesday, January 30, 2013

Pioneer Natural to sell shale stake to Sinochem for $1.7 bln, (NYSE: PXD)

Oil and gas producer Pioneer Natural Resources Co said it would sell a 40 percent interest in the Wolfcamp shale field in Texas to China's state-run Sinochem Group Co Ltd for $1.7 billion.The deal is the latest in a string of investments by Chinese companies in North America. State-controlled Chinese firms are seeking new energy sources to power the country's booming economy and gain understanding of emerging drilling methods to tap shale reserves at home.Sinochem will pay $500 million in cash and will fund a portion of Pioneer's share of drilling and other costs.Sinochem's businesses span energy, agriculture, chemicals, real estate and financial services, and the company has 200 units including Sinochem International Corp, Sinofert Holdings Ltd and Franshion Properties (China) Ltd.

Pioneer Natural Resources Company (Pioneer) is an independent oil and gas exploration and production company with operations in the United States and South Africa. Shares of PXD traded higher by 2.62% or $3.07/share to $120.44. In the past year, the shares have traded as low as $77.41 and as high as $119.19. On average, 1384930 shares of PXD exchange hands on a given day and today's volume is recorded at 1324907.