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Anadarko To Divest Its Chinese Subsidiary For $1.08 Bln - Update

2/18/2014 12:11 AM ET

Oil and natural gas producer Anadarko Petroleum Corp. (APC: Quote) late Monday said it has entered into a stock purchase agreement with a wholly-owned subsidiary of Brightoil Petroleum (Holdings) Limited (BRTPF.PK), whereby Anadarko would divest its Chinese subsidiary for $1.075 billion.

The subsidiary to be divested owns Anadarko's non-operating interest in the Bohai Bay field. During 2013, Anadarko's net oil sales volumes from Bohai Bay averaged around 11,000 barrels per day.

The transaction is expected to close later this year. It is subject to preferential rights, regulatory approvals and other customary closing conditions.

Anadarko CEO Al Walker said, "This transaction accelerates the recognition of value from a non-operated legacy asset and continues to demonstrate our commitment to active portfolio management. We value our long-term relationship with CNOOC, wish them continued success and look forward to future partnering opportunities."

Earlier this month, the company reported a fourth quarter net loss, hurt by a contingent loss related to the ongoing Tronox case as well as losses on divestitures.

Separately, Brightoil said in a filing with the Hong Kong Stock Exchange that the target company, Kerr-McGee China Petroleum Ltd., is a corporation formed under the laws of the Commonwealth of the Bahamas. It is principally engaged in gas and oil exploration, development and production.

The target company's major assets are a 40.09 percent participating interest in the Contract Area 04/36 and a 29.18 percent participating interest in the Unit Area which are two offshore blocks in Bohai Bay, North East China, from which oil and gas is currently produced.

The company also holds a 50 percent interest in the Excluded Asset, which is an exploration block where no commercial production has commenced.

APC closed nearly unchanged on Friday at $81.54.

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by RTT Staff Writer

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