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Energy

CNOOC buys 50% of Bridas Energy subsidiary

(Xinhua)
Updated: 2010-05-06 09:12

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CNOOC buys 50% of Bridas Energy subsidiary

A general view of China National Offshore Oil Corporation's (CNOOC) oil refinery in Huizhou, Guangdong province July 28, 2009. [Agencies]

China National Offshore Oil Company Limited (CNOOC Ltd) said Wednesday it has closed a $3.1 billion deal with Argentina-based Bridas Energy Holdings (BEH) to buy a 50 percent stake in Bridas Corporation, a wholly owned subsidiary of BEH before the deal.

Bridas Corporation, with oil and gas exploration and production operations in Argentina, Bolivia and Chile, is now a 50-50 joint venture between CNOOC Ltd and BEH.

CNOOC Ltd said it signed the deal on March 13, using its internal funding resources.

The transaction will increase CNOOC Ltd's proven reserves and average daily production by 318 million barrels of oil equivalent (BOE) and 46,000 BOE, respectively, based on 2009 figures.

CNOOC Ltd and BEH will make management decisions jointly.

The transaction is in line with CNOOC Ltd's growth strategy and expands its reach into Latin America and establishes a foundation for future growth in the region and other countries, Fu Chengyu, Chairman and Chief Executive Officer of the CNOOC Ltd, said.

Incorporated in Hong Kong, CNOOC Ltd is the listed subsidiary of China National Offshore Oil Corporation, China's largest offshore oil producer. The company produced 227.7 million BOE in 2009.