MercoPress. South Atlantic News Agency

China’s Main Oil Corporation Closes 3.1 Billion Deal with Argentina’s Bridas

CNOOC specializes in offshore exploration and production

China National Offshore Oil Corporation, CNOOC (NYSE:CEO) Ltd said on Wednesday it had closed a 3.1 billion US dollars deal with Argentina’s Bridas Energy Holdings (BEH) to buy a 50% stake in Bridas Corporation, a wholly owned subsidiary of BEH.

Bridas Corporation, with oil and gas exploration and production operations in Argentina, Bolivia and Chile is now a 50/50 joint venture between China National Offshore Oil Corporation, CNOOC (NYSE:CEO) and BEH, according to a brief relief from the giant Chinese corporation.

CNOOC said it signed the deal on March 13 using its internal funding resources. The transaction will increase CNOOC Ltd proven reserves and average daily production by 318 million barrels of oil equivalent (BOE), and 46.000 BOE respectively based on 2009 figures. CNOOC and BEH will make management decisions jointly, adds the release.

The operation is in line with CNOOC growth strategy and expands its reach into Latin America, establishing a foothold for future growth in the region and other countries, said Fu Chengyu, chairman and CEO from CNOOC.

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 barrels BOE in 2009.

CNOOC is China’s third-largest National Oil Company (NOC) next to China National Petroleum Corporation (CNPC) and China Petroleum & Chemical Corporation, Sinopec (NYSE:SNP). It focuses on the exploitation, exploration and development of crude oil and natural gas offshore of China. Its listed arm CNOOC Ltd. shares are traded in Hong Kong (HKG:0883) and New York.

CNOOC is a state-owned oil company, 70% of whose shares are owned by the Government of the People's Republic of China, and the State owned Assets Supervision and Administration Commission of the State Council performs the rights and obligations of shareholder on behalf of the government.