Conoco gets Canadian Competition Bureau's nod for Gulf acquisition

American oil and gas company Conoco Inc. on Wednesday announced that the Canadian Commissioner of Competition under the Competition Act (Canada) has issued an advance ruling certificate to Conoco's acquisition subsidiary, Conoco Northern Inc.

With the issuance of this certificate, Conoco Northern may complete the acquisition of Gulf Canada Resources Limited without having to obtain any additional approvals under the Competition Act (Canada), according to the statement.

The transaction is subject to other regulatory approvals and the conditions set forth in Conoco Northern's June 7, 2001, offer to holders of Gulf's ordinary shares.

Conoco has offered C$12.40 per ordinary share for Gulf Canada.

According to the statement, the acquisition will be immediately accretive to Conoco's earnings and cash flow per share. Expected to close in the third quarter, the transaction will increase Conoco's total worldwide reserves (including syncrude) almost 40 percent to 3.7 billion barrels of oil equivalent (BOE). Total worldwide production will increase 32 percent to 335 million BOE in 2001. Acquired properties offer the potential to add 1.2 billion BOEs from probable reserves already identified.

Conoco's North American natural gas production and proved reserves will increase by 50 percent to 1.4 billion cubic feet per day (BCFD), and 4.1 trillion cubic feet (TCF) net, respectively. Conoco's proforma North American liquids production (crude oil, syncrude and NGLs) will more than double, and proved North American liquids reserves will more than triple.

Southeast Asia will become a fourth core area for Conoco through Gulf Canada's 72 percent interest in Gulf Indonesia Resources Limited. Conoco will more than double its proved reserves in Southeast Asia and more than triple 2000's total net production from the region.

Earlier, Pat Meyer, Conoco?s Indonesian unit president said that incorporating earning from a 72 percent stake in Gulf Indonesia, natural gas sales, and oil production from Conoco operations in West Natuna, Conoco's earnings from South East Asia following the acquisition is set to exceed US$ 100 million in 2001.

In Indonesia , where Conoco's Southeast Asian oil and gas investments are concentrated, Conoco and Gulf Indonesia will continue operating as separate companies as Gulf Indonesia is not a wholly -owned Gulf Canada Unit. (*)