Bridas is currently a wholly owned subsidiary of BEH and could have its name changed after transaction completion. The transaction will be funded from the internal resources of the company.
Upon completion of the transaction, the company and BEH will each hold a 50% interest in Bridas, and will jointly make management decisions. Currently, Bridas, through its affiliates (including a 40% interest in Pan American Energy), has oil and gas exploration and production activities in Argentina, Bolivia and Chile.
This transaction is in line with the company’s growth strategy to expand its reach into Latin America and establish a foundation for future growth in the region and other countries.
Completion of this transaction is subject to necessary government and regulatory approvals of People’s Republic of China, and is expected to take place in the first half of 2010.
It is expected that, upon completion of the transaction, reserves and average daily production of the company will be increased by 318 million barrels of oil equivalent and 46 thousand BOE respectively.
Fu Chengyu, chairman and CEO of CNOOC, said: ”BEH is one of the foremost companies in Argentina and a pioneer in the oil and gas industry. This joint venture is aligned with our philosophy of seeking partnerships to expand our global footprints. I trust this investment will bring value to our shareholders both in short term and long run.”
