Cnooc to form $3.1 billion oil production JV with Argentina’s Bridas Energy
15 Mar 2010
China's largest offshore oil producer, China National Offshore Oil Corporation (Cnooc), is forming a 50-50 oil-production joint venture, Bridas Corporation, with Buenos Aires-based independent oil and gas holding company, Bridas Energy Holdings Ltd.
Beijing-based Cnooc said yesterday that its subsidiary Cnooc International Limited will pay $3.1 billion in cash for its 50-per cent stake in the joint venture, in which it will have a share of the management. Through its affiliates Bridas Energy energy has a 40-per cent interest in Pan American Energy LLC, oil and gas exploration and production activities in Argentina, Bolivia and Chile.
Pan American Energy, in which British energy major BP owns a 60-per cent stake, has 11 oil and gas production blocks, and 9 oil and gas exploration blocks in Argentina, Bolivia and Chile.
These blocks are located in four hydrocarbon basins, including Golfo San Jorge, Austral, Neuquen, and Northwest in Argentina. The company also has interests in various portions of the oil and gas value chain, including pipelines, oil terminals, gas distribution, and power generation.
As of 6 December 2005, Pan American Energy had reserves of 929 million barrels of oil and 7.1 Tcf (trillion cubic feet) of natural gas.
Bridas Corp had proven reserves of 636 million barrels of oil equivalent (boe) and an average daily production of 92,000 boe at the end of 2009.
