November 8 – CNOOC (Rcode:00883:) canceled plans to purchase a 60-percent stake in Pan American Energy (PAE) from BP, reports Beijing Times, citing a company filing.

Last May, the company successfully expanded into the South American market by acquiring a 50-percent stake in Argentina-based oil and gas firm, Bridas Corporation, for US$ 3.1 billion, resulting in a 20-percent indirect interest in PAE, the second largest refinery in Argentina.

BP and Bridas signed an agreement in November to jointly purchase a 60-percent stake in PAE for US$ 7.06 billion, and this deal was expected to be completed by the first half of 2011.

Bridas decided to terminate the transaction because certain prerequisites had not been met and will still conduct business with PAE. Previously, Sinopec's US$ 7.24-billion takeover of ADDAX in 2009 was the largest overseas acquisition by a Chinese refinery.

According to a BP spokesman, the firm has no urgent need to sell its PAE shares, especially since the asset's value continues to increase due to rising oil prices.

Goldman Sachs predicts the Penglai 19-3 oilfield, which has currently halted production, will resume operations next year, contributing eight percent to output growth.

Source:CapitalVue