Pioneer has about 207,000 net acres in the Spraberry Trend Area Field, of which Sinochem has acquired 82,800 net acres in the field.

As part of the deal, Sinochem has paid $631m to the company, of which $522m was the up-front portion of the transaction price and $109m was Sinochem’s 40% share of net expenditures in the joint interest area.

Sinochem plans to pay the remaining $1.2bn, after carrying 75% of Pioneer’s share, which includes future drilling and facility costs.

Sinochem will receive its share from the joint interest area, which is flowing about10,000 barrels oil equivalent per day.

Pioneer will remain the operator of the lease hold and conduct all leasing, drilling, operations and marketing activities in the joint interest area.