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Australia-based Kairiki Energy has signed a Memorandum of Understanding (MOU) with Beijing Junlun Runzhong Science & Technology and Hefei Xinxin Petrochemical to acquire two onshore oilfields in northern China.

The acquired assets include Daerqi and WengTe oilfields in Inner Mongolia.

Both the fields were discovered by Sinopec in the mid 1990s, while Xinxin took over operation in 2008, reported OilVoice.

Xinxin started commercial production in the Daerqi field, as well as conducted thermal and chemical pilots in the field.

The current production from the field is about 300 bopd.

The company is planning to increase production to about 5,000 bopd in the next three years, while the field is estimated to hold about 200 million barrels in excess.