CNOOC Acquires Bridas - CNOOC Enters South America Through the Deal - Deal Analysis from GlobalData

CNOOC Acquires Bridas - CNOOC Enters South America Through the Deal - Deal Analysis from GlobalData

Summary

The China National Offshore Oil Corporation (CNOOC) completed the acquisition of a 50% interest stake in Bridas Corporation (Bridas) from Bridas Energy Holdings Ltd. (BEH) for a purchase consideration of $3.1 billion in cash.

The transaction was funded from the internal resources of CNOOC. As a result of the transaction, CNOOC and BEH each hold 50% interest in Bridas, and now jointly make management decisions. In connection with this transaction, CNOOC International Limited, a wholly-owned subsidiary of the CNOOC, signed the relevant transaction documents with BEH on March 13, 2010.

In this transaction, JPMorgan Chase & Co. acted as financial advisor and Baker & McKenzie LLP acted as legal advisor to CNOOC, and Hopu Investments acted as financial advisor and Akin Gump Strauss Hauer & Feld LLP acted as legal advisor for Bridas.

The transaction implied deal values of $67,391.3 per barrel of oil equivalent (boe) of daily production and $9.75 per boe of proved reserves.

Scope

• Rationale behind CNOOC acquiring Bridas,
• Strategic Benefits for CNOOC to look for exploration assets in South and Central America,
• Geography covered -Argentina

Reasons to buy

• Develop a sound understanding of the major M&A's, Partnerships, And Joint Ventures taking place in South and Central American industry,
• Identify the most lucrative segments to leverage on the growth oppurtunities available in the Argentina's oil & gas market,
• Get a detailed analysis of a deal to enable you to take better decisions.