Hong Kong's Brightoil Petroleum (Holdings) Ltd., a marine bunkering and transportation company, has finalized its US$1.046 billion acquisition of two offshore oil-producing blocks from Anadarko China Holdings 2 Co. Ltd., a wholly owned subsidiary of Anadarko Petroleum.
The two blocks in Bohai Bay, northeast China, include the 124sq km Contract Area 04/36 and the 88sq km Unit Area 05/36, both operated by CNOOC China Ltd. Brightoil has acquired 40.09% interest in 04/36, and is now partnered with CNOOC (51%) and Singapore Petroleum Co. Ltd. (9%). Brightoil also has acquired 29.18% interest in 05/36 with partners CNOOC (51%), Newfield Exploration Co. (12%), and Singapore Petroleum (8%).
This transaction was originally announced 18 February 2014.
Anadarko has been divesting international assets in order to concentrate on unconventional shale development. The company sold assets offshore Mozambique in 2013 to India's Oil & Natural Gas Corp. Ltd. (ONGC), and may also divest assets in Brazil.
Brightoil says the Bohai Bay acquisition takes it into offshore oil production for the first time and that its oil and natural gas storage and production will “increase immensely.”
Dr. Sit Kwong Lam, Chairman and CEO of Brightoil Petroleum, said, “We believe that the closing of the acquisition marks the successful transformation of the Group in its aim to become a resource-based energy enterprise. The Group will continue to strengthen its development in the upstream business, aiming to achieve sustainable growth of its reserves, production volume and revenue in the long run. This will accelerate the Group’s development into an international integrated oil & gas conglomerate."
Prior to this acquisition, Brightoil’s upstream assets included two natural gas fields in the Xinjiang Uygur Autonomous Region: Dina1 and Tuzi. The Tuzi Luoke gas field, jointly developed by Brightoil's wholly owned subsidiary, Win Business Petroleum Group (Grand Desert) Ltd. and CNPC, began production 7 December 2013.
Related AOG coverage:
Newfield continues divesting international operations, 29 July 2014
Anadarko divests Chinese subsidiary, 21 February 2014
China, 1 October 2012
AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week