$850 million deal is China’s largest direct investment in Colombia and a significant implementation of Chinese energy security policy
NEW YORK – LAWFUEL – Legal News Daily – Allen & Overy LLP is pleased to announce that a subsidiary of its client, Sinopec International Petroleum Exploration and Production Corporation of China (SIPC), has completed a joint venture with a subsidiary of India’s ONGC Videsh Limited for the acquisition of Omimex de Colombia Inc. from Texas-based Omimex Resources Inc.
The deal, valued at $850 million, marks the largest investment to date by a Chinese company in Colombia and is an important project in support of China’s energy security policy. The transaction represents one of the first times that China and India have invested together in support of their bilateral agreement for joint strategic global energy expansion.
Omimex de Colombia has operations exclusively in Colombia that include onshore exploration and production activities of light and heavy oil in the Velasquez, Nare and Cocorna fields, as well as ownership and operation of a midstream pipeline.
Allen & Overy partner Mitchell Silk, head of Allen & Overy’s new China Practice Group in New York, was lead counsel to Sinopec in the deal. He led a team from Allen & Overy’s offices in New York, Beijing, and Hong Kong, who worked with a global roster of parties for the transaction, including representatives from Beijing, Hong Kong, New Delhi, Dallas, Bogota and Dubai.
“We’re very pleased to have played a role in helping Sinopec with this truly significant transaction,” said Mr. Silk. “It represents a key development in China’s strategic energy policy, and we are honored that they turned to us for counsel. This project was a natural fit for our new China Group in New York, and was exactly the type of transaction we had in mind when we established this practice. We were able to draw on our considerable resources in China and New York to deliver multi-lingual advice by leading energy, M&A and Latin American counsel to provide effective results for our client.”
“This deal is a landmark for our New York China Group, and the firm as a whole,” said Dan Cunningham, the senior partner in the New York office. “Today’s global environment demands counsel experienced with complex, multi-jurisdictional matters, and this work has become a perfect extension of our expanding M&A practice in New York. We are very pleased that this sophisticated marketplace is recognizing the reservoir of talent available in the Allen & Overy New York office.”
Other members of the Allen & Overy team in New York involved with the deal were senior counsel Ana Cruz- Rosenblum, senior counsel Margarita Oliva, and associates Gary Lazarus, Elicia Ling, Jie Chen, Richard Malish and Matthew North. Jack Heinberg and David Lewis provided tax advice and Ken Rivlin advised on regulatory matters. Partner Peter Thorp led the Beijing team, assisted by Frederick Tao.
Citigroup acted as financial advisor to Sinopec and the law firm of Zuleta Acosta Suarez Ibarra Araque & Jaramillo Abogados SA served as their local counsel in Colombia.
UBS served as financial advisor to ONGC, with Denton Wilde Sapte providing legal counsel. Brigard & Urrutia served as ONGC’s local counsel in Colombia.
Thomson & Knight advised Omimex Resources Inc.