Sumitomo to join U.S. oil project

Kyodo

Sumitomo Corp. said Thursday it has agreed to buy a 30 percent stake in an oil development project in Texas for around $1.37 billion.

The trading house plans to pay a total of $2 billion, including the price for the stake and development costs, over three years. The project by Devon Energy Corp. is in the Permian Basin, which accounts for some 20 percent of U.S. crude oil output.

Sumitomo has asked the government-backed Japan Bank for International Cooperation and others to provide loans for the deal.

The project is planned to continue for more than 30 years, producing crude oil, natural gas liquids and natural gas.