Chinese oil companies CNOOC (CEO.NYSE, 0883.HK) and Sinochem (600500.SH) are separately bidding for shares in a large oil field in Brazil in which Statoil ASA (STO.NYSE, STL.OSE) is selling a 40% stake, the Wall Street Journal reported, citing sources who are familiar with the matter. It was not specified whether the two Chinese companies are competing for the full 40% being sold, or if each is bidding for part of the Peregrino oil field offering. Norwegian state-owned Statoil ASA – which holds 100% of the shallow-water oil field – closed bidding and the outcome is expected soon. The potential CNOOC and Sinochem deals follow a series of recent Chinese oil and gas investments in Latin America, including a joint venture between CNOOC and Argentina’s Bridas Energy and CNOOC’s purchase of four Statoil offshore oil-field leases in the Gulf of Mexico last year. Peregrino is estimated to hold 500 million barrels of heavy oil in recoverable reserves. Statoil expects the oil field will start production early next year.
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