The two companies have signed a joint venture agreement to pursue exploration and development opportunities in the AC/P22, AC/L6 and AC/RL1 permits.

Under the terms of the farm-out, Sinopec will take over as operator and earn a 60% stake in each permit, leaving AED with the remaining 40%.

AED said on Friday that the transaction, which valued its assets at $1 billion, was due to be wrapped-up by month-end subject to government approvals.

The announcement ends an eight-day trading halt for AED that came into effect when the company reported it was considering offers from a number of unnamed parties over the sale of some of its assets.

Then on Monday, AED said it had started negotiations with one of the interested parties, now revealed to be Sinopec.

AED said it would use the funds from the farm-in to pay off $41.5 million in overdue debt to Norwegian oil services firm AGR Group, settle its creditors and fund its JV interest and development opportunities.

"AED's board believes this transaction to be in the best interests of its shareholders with a view to maximising future value from its assets," the company said.

"Having a partner with the extensive experience and financial resources of [Sinopec] will achieve the strategic objectives of AED in seeking a partner outlined in our previous announcements."