Cnooc Acquires Stake In Bridas For $3.1 Billion
March 15, 2010 2:09 AM
Cnooc (NYSE: CEO), China's largest offshore oil explorer, acquired a 50% stake in Argentina's Bridas for $3.1 billion in a deal that will help Cnooc add 318 million barrels of oil reserves.
Bridas owns a 60% stake in Pan American Energy, Argentina's largest oil and natural gas producer. BP (NYSE: BP), the largest European oil company, owns the remaing 40%. Pan American also has oil assets in Bolivia and Chile. The company produces about 17% of Argentina's oil and 15% of its gas.
Cnooc had previously tried to acquire Spain-based Repsol's (NYSE: REP) Argentine assets last year. Cnooc estimates the Bridas investment will also boost its average daily production by 46,000 barrels, according to Bloomberg News.
The acquisition is Cnooc's largest international purchase and its foray into Latin America. Cnooc is also evaluating oil assets in Africa and is likely to continue to be a player in global energy acquisitions as the company attempts to help China meet its soaring energy. China is the world's second-largest consumer of oil behind the U.S.
