Sinopec International Petroleum Exploration and Production Corporation (Sinopec) will purchase a 49% equity interest in Talisman Energy UK (TEUK), for a total consideration of $1.5bn.
TEUK holds operated and non-operated interests in 46 fields and operates 11 offshore installations and an onshore terminal in the North Sea.
John A Manzoni, Talisman Energy president and CEO, said the acquisition will provide additional resources and energy to create an exciting future for the portfolio.
"At the same time, Talisman has delivered on two key promises for the year. We are reducing our working interest and capital spend in the UK business by approximately half, allowing us to focus on and fund growth areas within our portfolio," said Manzoni.
"This brings our total divestment proceeds to approximately $2.5bn so far this year."
Subject to government and regulatory approval, the transaction is expected to close by the end of this year.
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Post sale, the joint venture will invest to improve ongoing operating performance, including infill drilling, exploration opportunities and major projects.
Talisman also unveiled plans to implement a normal course issuer bid, to repurchase approximately $500m of its common shares.