Citigroup (NYSE:C) said today Cnooc Ltd. could make a bid of $10.2 billion for its 60 percent for BP's (NYSE:BP) stake in Argentina’s Pan American Energy LLC. Cnooc is the largest Chinese offshore exploration company.
The bid would be a 10 percent premium over what it paid earlier in 2010 for Pan American, but that is because they would assume control of the company if they are successful in their BP bid.
If this goes through, it would be close to double the approximate $10 billion in assets already sold, and two-thirds of the way toward the $30 billion BP is attempting to raise to meet liability obligations in relationship to the Gulf of Mexico oil spill.
Cnooc is reportedly looking for a partner in the bid, which could come from Apache Corp. (NYSE:APA), Occidental Petroleum Corp. (NYSE:OXY) or Total SA (NYSE:TOT), all of which have operations in Argentina already.
Showing posts with label Cnooc. Show all posts
Showing posts with label Cnooc. Show all posts
Wednesday, September 15, 2010
Thursday, August 5, 2010
BP (NYSE:BP) Could Sell Argentine Assets to China's CNOOC
Looking to sell about $30 billion in assets to raise capital to pay for its liabilities in the Gulf oil spill, BP has considered selling assets in a number of countries, including Pakistan, Vietnam, Canada, Egypt, and in South America, Colombia.
With a 60 percent stake in PAE, one of BP's strongest assets in South America, the company could possibly raise $12 billion alone, with PAE being recently valued at close to $20 billion.
Holding the other 40 percent stake in PAE is Bridas of Argentina.
Where CNOOC comes into the picture is they recently acquired a 50 percent stake in Bridas, revealing an interest in PAE. If BP decides to sell their stake in the company, they could, along with the other $9 billion in assets they've already committed to selling, bring the total to over two-thirds of what their asset-selling goal is.
Some analysts think it's unlikely that CNOOC would acquire BP's stake in PAE, because of taxes in Argentina.
Reserves at PAE are rising, and it is an attractive asset, although it could be put up for sale by BP, as it isn't considered as important as some of its other assets, and could bring a good price.
With a 60 percent stake in PAE, one of BP's strongest assets in South America, the company could possibly raise $12 billion alone, with PAE being recently valued at close to $20 billion.
Holding the other 40 percent stake in PAE is Bridas of Argentina.
Where CNOOC comes into the picture is they recently acquired a 50 percent stake in Bridas, revealing an interest in PAE. If BP decides to sell their stake in the company, they could, along with the other $9 billion in assets they've already committed to selling, bring the total to over two-thirds of what their asset-selling goal is.
Some analysts think it's unlikely that CNOOC would acquire BP's stake in PAE, because of taxes in Argentina.
Reserves at PAE are rising, and it is an attractive asset, although it could be put up for sale by BP, as it isn't considered as important as some of its other assets, and could bring a good price.
Tuesday, July 6, 2010
BP's (NYSE:BP) Pan-American could be at Top of Asset Sale List
In a bid to become more liquid, BP (NYSE:BP) has been looking at selling some of its assets in order to raise about $10 billion to help pay off victims of the oil spill.
There have been several assets being considered, especially oil fields in several countries which are past their oil production prime, or are smaller in reserves.
But the top asset that could be sold and which would raise close to what they want is Pan-American in Argentina.
One name being bantered about as to a potential suitor of Pan-American is Cnooc Ltd., the largest offshore oil producer.
“Pan American is the obvious place to start,” said Christopher Wheaton, at Allianz RCM’s Energy Fund in London. It’s got a valuation from Cnooc in mid-March and is one of the assets you could carve out of the portfolio easily.”
Pan-American produces close to 100,000 barrels of oil a day, and 450 cubic meters of gas, according to BP.
The sale of Pan-American would fetch over $9 billion for BP.
There have been several assets being considered, especially oil fields in several countries which are past their oil production prime, or are smaller in reserves.
But the top asset that could be sold and which would raise close to what they want is Pan-American in Argentina.
One name being bantered about as to a potential suitor of Pan-American is Cnooc Ltd., the largest offshore oil producer.
“Pan American is the obvious place to start,” said Christopher Wheaton, at Allianz RCM’s Energy Fund in London. It’s got a valuation from Cnooc in mid-March and is one of the assets you could carve out of the portfolio easily.”
Pan-American produces close to 100,000 barrels of oil a day, and 450 cubic meters of gas, according to BP.
The sale of Pan-American would fetch over $9 billion for BP.
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