CNOOC tests US with $1.1 billion bid: Report

09:14, October 12, 2010      

Email | Print | Subscribe | Comments | Forum 

China's offshore oil producer CNOOC agreed to pay $1.1 billion for a minority stake in a U.S. shale oil and gas field, testing the U.S. market for the first time since its 2005 failed bid for Unocal.

The Chesapeake agreement shows that the Chinese company is confident that the purchase of a 33 percent stake in the Eagle Ford acreage in southern Texas will get the backing of U.S. regulators and politicians, who stepped in five years ago to block CNOOC's bid to buy U.S. oil company Unocal, The Reuters reported Monday.

By working with Chesapeake, which would remain the operator of the project, the deal could help CNOOC gain exposure to the complicated shale-gas extraction technology that it still lacks, The Reuter reported.

CNOOC agreed to fund 75 percent of Chesapeake's share of drilling and completion costs until an additional $1.08 billion has been paid, which Chesapeake expects by year-end 2012, the companies said. The transaction is expected to close in the fourth quarter.

"Partnering with Chesapeake on this project to develop shale oil and natural gas jointly ... satisfies the spirit of Sino-U.S. cooperation in the energy sector," CNOOC Chairman Fu Chengyu said in a statement.

CNOOC came in with negotiations with Chesapeake after the talks with Indian energy company Reliance Industries and Chesapeake collapsed last week.

People's Daily Online


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
Hot Forum Discussion