London-based oil and gas exploration company Gulfsands Petroleum is in talks about a possible takeover with Chinese state-owned Sinochem.
Sinochem may offer up to ┬ú400 million for Gulfsands, according to reports. It is understood that investors have been particularly attracted by GulfsandsÔÇÖ activity at its Khurbet East oilfield in Syria.
The company has recently completed an expansion of the processing facility at Khurbet East, bringing capacity up to 18,000 barrels of fluid per day.
Work on previously drilled wells has also been concluded, bringing the increase in the fieldÔÇÖs total daily production from 10,730 barrels of oil per day to 14,700 barrels of oil per day.
The move is the latest in a series by Sinochem, which is eager to acquire oil and gas assets. Earlier this month, it paid £532 million for Emerald Energy, Gulfsands' joint venture partner in Syria.
The final sum for the deal could be agreed within weeks, according to reports.
Gulfsands operates primarily in the Middle East but also has interests in the US.
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