Brightoil Finalizes Bohai Bay Deal

Brightoil Petroleum (Holdings) Limited  has completed a stock purchase agreement with Anadarko China Holdings 2 Company Limited, a wholly-owned subsidiary of Anadarko Petroleum Corporation, to acquire a participating interest in two oil producing blocks in Bohai Bay, China, (Contract Area 04/36 and Unit Area 05/36) for a consideration of USD 1.046 billion.

Following the signing of the agreement on February 18, the acquisition was successfully completed on August 8, after six months of efforts put together by both parties. After the closing of the agreement, Brightoil 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.

As a result of this, Brightoil’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.

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.

Dr. Sit Kwong Lam, Chairman of Brightoil Petroleum, said: “We believe that the closing of the acquisition marks the successful transformation of the company in its aim to become a resource-based energy enterprise.

The company 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 our development into an international integrated oil & gas conglomerate and at the same time enhance our returns to investors and create further shareholders’ value.”