CNOOC Eyes Global Market, Deep Sea Oil
From Caijing Magazine:
China’s largest ever acquisition of a foreign company has given energy developer China National Offshore Oil Corp. (CNOOC) a chance to tap deepwater resources at home and expand in new markets abroad.
The proposed US＄ 2.5 billion buyout of the Norwegian oil services company Awilco by CNOOC subsidiary China Oilfield Services Ltd. (COSL) (SSE: 601808, HKSE: 02883) is expected to open access to newly discovered oilfields in the deep waters of the South China Sea.
The COSL-Awilco agreement announced July 7 would be “the largest overseas acquisition made by a Chinese company,” said a person close to the deal.
Awilco’s directors have recommended shareholders approve the sale, which is expected to close in September or October. Beijing’s chief economic planner, the National Development and Reform Commission, gave its blessing on July 28.