Anadarko Petroleum sold participating interests in two offshore oil blocks in China to Brightoil Petroleum for US$1.046 billion Monday.
The deal was paid for with a stock purchase agreement and was made through Anadarko China Holdings 2, a wholly owned subsidiary of Texas-based Anadarko.
Brightoil is a Hong-Kong based, privately held energy company with upstream, storage and terminal assets in China.
The two blocks, Contract Area 04/36 and Unit Area 05/36, are located in the Bohai Bay just north of the Yellow Sea.
Contract Area 04/36 covers 47.8 sq mi (124 sq km) and Unit Area 05/36 covers about 34 sq mi (88 sq km).
Both blocks are operated by China’s state-owned CNOOC.
Brightoil now holds a 40.09 perent participating interest in Contract Area 04/36 and a 29.18 percent participating interest in Unit Area 05/36.
The purchase is expected to bring Brightoil’s daily net production in China to approximately 25,000 barrels of oil equivalent and raise its annual net production to 9 million barrels of oil equivalent.