Image courtesy of Anadarko.

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.


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