Brightoil completes $1B Bohai purchase
- Business & Finance
Brightoil Petroleum has announced the closing of a stock purchase agreement with Anadarko to acquire a participating interest in two oil producing blocks in Bohai Bay, offshore China, for USD 1.046 billion.
Following the signing of the agreement on 18 February, the acquisition was successfully completed on 8 August after six months of efforts put together by both parties. After the closing of the Agreement, the Group now holds a 40.09% participating interest in the 124km2 offshore block (Contract Area 04/36) and a 29.18% participating interest in the 88 km2 offshore block (Unit Area 05/36). The operator of both blocks is CNOOC China Limited (“CCL”).
As a result of this, the Company’s oil and natural gas resources extend from the ground to offshore, and the Company’s oil and natural gas storage and production will increase immensely. Together with its originally owned Dina1 and Tuzi natural gas field, the Company’s interest in 2P storage is expected to reach approximately 86 million boe.
When all these three areas are in operation, Dina1 and Tuzi and Bohai will reach a daily net production of approximately 25,000 boe, and an annual net production of approximately 9 million boe. Upon this successful Closing, the Company will reach a solid step-out and broaden its activities into energy resources supply and operation.
Dr. Sit Kwong Lam, Chairman 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 and at the same time enhance our returns to investors and create further shareholders’ value. “