CNOOC Limited acquires Repsol-YPF Indonesian assets

CNOOC Limited, a subsidiary of China National Offshore Oil Corporation Limited announced on Friday that it had agreed to buy Indonesian assets of Spanish-Argentinean oil and gas firm Repsol-YPF for US$585 million

``We are delighted to have successfully agreed this acquisition and are looking forward to a rapid integration of these assets. We are making a material acquisition of production and reserves at an attractive price and adding experienced operating personnel. This is a good strategic move, capitalizing on our offshore expertise.'' commented Wei Liucheng, the Chairman and CEO of CNOOC Limited in a statement.

The acquisition will make CNOOC Limited the largest offshore oil producer in Indonesia. Estimated net working interest proved reserves to be acquired total approximately 360 million barrels-of-oil equivalent.

The assets to be acquired include an aggregate 65.34 percent interest in the Southeast Sumatra PSC, an aggregate 36.72 percent interest in the Offshore Northwest Java PSC, a 25.00 percent interest in the West Madura PSC, a 50.00 percent interest in the Poleng TAC and a 16.70 percent interest in the Blora PSC.

Following completion of the acquisition, the Southeast Sumatra PSC will be operated and majority owned by CNOOC Limited.

CNOOC Limited currently has a presence in Indonesia through a 39.51 percent participating interest in the Malacca Strait PSC.

Merrill Lynch (Asia Pacific) Limited is exclusive advisor to CNOOC Limited in connection with the acquisition.(alex/robert)