China Oilfield Services Ltd. is in talks to acquire a majority stake in a Russian oil services company in an effort enter the country's market, according to a top company official.

Chen Weidong, the company's executive vice president, revealed the potential deal and said he has some concerns about the legal framework and cultural impact of the Russian acquisition, but no political ones.

He also said the company is currently operating alone in the acquisition, but would not deny opportunities to work with other Chinese companies if the need arises.

The company, a subsidiary of the China National Offshore Oil Corp., the third largest oil company in China, specializes in offshore oil drilling. CNOOC listed shares on New York Security Exchange in 2001.

CNOOC, founded in Hong Kong in October 1999, has more than 1,000 employees and owns oil and natural gas reserves of 1.8 billion barrels as of last year. Chen said the company is trying to get 30% of its revenue from providing services abroad by 2008.

COSL was very close to investing in the Indonesian oilfield services company PT Apexindo Pratama Duta Tbk earlier this year but the deal broke down abruptly when PT Apexindo decided not to pursue the agreement, he said.

The company then secured a three-month contract with another Indonesian company MEDCO MOECO Langsa Ltd. for offshore oil exploitation last month.

Apart from Indonesia, COSL also has drilling and maintenance contracts in nine countries including Australia and Iran. Its oil and natural gas fields lie in four areas in the Bohai Bay off northern China, the East China Sea, and the eastern and western parts of the South China Sea, with production of 243 thousand barrels a day.

Source:佚名