CNOOC unit waits for nod on purchase
China Oilfield Services Ltd, a unit of the nation’s third-largest oil producer, is awaiting approval from the Chinese securities regulator on its purchase of Awilco Offshore ASA and may complete the transaction by the end of next month.
The go-ahead, the last regulatory hurdle on the Chinese side, is expected “soon,” President Yuan Guangyu said in Hong Kong yesterday.
China, the world’s largest oil user after the United States, has intensified the search for oil and gas at home and abroad to overcome stagnant production from older fields, Bloomberg News said. Rising orders prompted China Oilfield to acquire Norway’s Awilco earlier this year for 12.7 billion kroner (US$2.4 billion) to expand its rig fleet by 47 percent.
China Oilfield, a unit of China National Offshore Oil Corp, plans to make more acquisitions after the Awilco takeover, Yuan said.
The company expects its overseas business to account for 30 percent of its total revenue by 2010, an increase from about 25 percent this year, Yuan said. About 65 percent of China Oilfield’s sales currently come from CNOOC Ltd, the nation’s biggest offshore oil producer, he said.
“Both the foreign and domestic oil and gas producers are increasing investment in explorations, boosting orders for field service providers,” Yuan said.
China Oilfield expects to charge higher fees for its services as crude oil prices increase, Chief Financial Officer Zhong Hua said.
The firm said yesterday its first-half profit rose 40 percent to 1.5 billion yuan (US$219 million).
China Oilfield will manage and operate the nation’s first deep-water drilling vessel by 2011, Yuan said.
Tags: CNOOC, oil, Oilfield