Split-feed BP assets: CNOOC or billions of dollars to buy Pan Am energy

BP is still paying the price for the biggest oil spill in US history, with little time left to consider, and BP will need to complete a deal to sell up to $30 billion trillion in assets over the next 18 months to make a compensatory payment for the oil spill. Whatever the situation that BP faces, it is an excellent opportunity for other oil giants around the world to expand their resources.　　This reporter learned from multiple sources, China National Offshore Oil Corporation (hereinafter referred to as CNOOC) has been fully prepared for the opportunity, once mature, CNOOC will be in Latin America's oil assets in the scramble for the next city.　　CNOOC is likely to buy up to 60% of BP's Argentine energy company, Pan American Energy (Pan Am), according to foreign reports. "A few people in the company set up the project team is in secret negotiations, we have been very limited information, the specific circumstances of the blockade is very tight, the people involved in the negotiations signed a confidentiality agreement."　　A policy researcher from CNOOC's office said to reporters. The Pan American Energy company, headquartered in Argentina, is the second lard producer, the largest exporter of crude oil and the fastest-growing oil and gas company in Argentina.　　Its output accounted for about 17% of Argentina's total oil production. In March this year, CNOOC spent $3.1 billion on a 50% per cent stake in the Argentine oil and gas company, Bridas Energy Holdings wholly owned subsidiary Bridas Corporation (hereinafter Bridas). Bridas has oil operations in Argentina, Bolivia and Chile, including 40% per cent of the Pan American Energy company.　　The BP sale is the remaining 60% of the shares. In other words, CNOOC gained a 20% per cent share of pan-American energy for 3.1 billion dollars. The price of the remaining 60% per cent of the pan-American Energy Holdings is about $9.3 billion, as measured by the last trading valuation.　　In the market, CNOOC reported a 10.2 billion dollar price, about 10% higher than the last transaction price. "It is in line with international practice that the price of acquiring a controlling interest is generally higher than the price paid by the equity participation, but it can be seen that although BP is selling assets in a crisis, it is still strong and CNOOC is not taking any advantage."　　"said a petrochemical analyst.　　However, for CNOOC, if the pan-American energy control is won, it will lay a solid base for its "South American strategy".　　In addition to pan-American energy, CNOOC is bidding with Sinopec for a 20% per cent stake in a offshore oil field in camps Basin, the upstart OGX Company of Brazil. The report from Citigroup also said that in order to increase the likelihood of success, CNOOC is likely to seek a partnership to participate in the bid, while the U.S. Western Oil Company (Occidental Petroleum Corp., total SA, France and the US Apache Corporation, which has just acquired BP assets, are interested in working with CNOOC to complete the deal. CNOOC is also keen on BP's assets in the Gulf of Mexico, in addition to BP's assets in South America. Analysts believe that if BP sells the assets of the Gulf of Mexico, the country is the most confident to win the assets of CNOOC. The reporter calls BP China Investment Limited company vice President Chen Xinhua to understand the situation, Chen to this does not comment.　　CNOOC Media Reception Department said, if there are related news, will be released publicly. The prospects for mergers and acquisitions have long been familiar to BP and Cnooc's two major oil companies. Just 13th this month, BP announced that its purchase of a portion of the 42/05 block of the Pearl River Mouth basin in the South China Sea has been approved by the Chinese government, and future operations and equity in these blocks will be in cooperation with CNOOC.　　Prior to this, two companies have also had many cooperation, including the establishment of the joint venture-main LNG Guangdong Dapeng liquefied natural gas company.　　But that does not mean that the seemingly ripe deal will be easily achieved. The industry said the political factor is an important aspect of preventing CNOOC from successfully acquiring the project.　　As a national oil company, Argentina's tax code will limit CNOOC's acquisition of more assets. Mr. Chen declined to comment on Chen Weidong, chief energy researcher at CNOOC Energy Research Institute. But in a recent energy forum, when asked if CNOOC was interested in BP's shares, Chen Weidong said: "I don't think it's going to be easy."　　"And to show that this is its personal point of view. CNOOC insiders also objected to the takeover and said that "it would not be wise to choose to operate this part of the Pan-American energy company 60%."　　In recent years, domestic oil companies have been actively seeking to expand overseas oil and gas resources. Prior to 2006, CNOOC had been at the forefront of domestic oil companies in mergers and acquisitions, and the acquisition of Unocal was a well-known international presence.　　And it is in the Unocal acquisition war drubbing, the overseas acquisition of CNOOC began to weaken markedly, especially in the 2008 international financial crisis, the two major oil giants frequently go to sea, CNOOC has always been to the stability of the outline, maintaining a low-key. And in recent times, CNOOC began again in overseas acquisitions on the force. "In the past two years compared with the domestic counterparts, CNOOC more robust pursuit of stability, the expansion of a little slower, and the recent foreign strategy has obviously become positive again."　　"said one industry observer. CNOOC AG (0883.　　HK) recently released the first half of the results report, the company's first half of the capital expenditure of 2.113 billion U.S. dollars, far below the annual planned capital expenditure of 7.776 billion U.S. dollars. "The first half of this year, CNOOC operating cash flow increased by one times, the company capital adequacy, have sufficient financial resources to continue toOverseas acquisitions, including BP's Argentine oil and gas assets. said the person.