CNOOC to acquire Opit Canada

CNOOC to acquire Opit Canada

BEIJING - China National Offshore Oil Corp (CNOOC) Ltd, the country's biggest offshore oil producer by capacity, said on Wednesday that it agreed to acquire cash-strapped oil sands producer Opti Canada Inc for $2.1 billion in cash and debt, a week after Opti filed for bankruptcy protection.

The aggregate value of the transaction will include $1.25 billion in cash for Opti's shares and some notes. CNOOC will also assume $825 million of Opti's debt, it said in a statement on Wednesday.

CNOOC to acquire Opit Canada

Headquarters of China National Offshore Oil Corp (CNOOC) Ltd in Beijing. If the acquisition of Opti Canada Inc is approved, CNOOC's reserves will rise by 5 percent to 3.15 billion barrels of oil equivalent. [Photo/China Daily]

The deal is subject to authorities' approval in China and Canada and is expected to be completed in the fourth quarter of this year, said Zhong Hua, chief financial officer of CNOOC Ltd.

The major assets of Opti Canada, which filed for bankruptcy protection on July 13,,discount ugg boots, include a 35 percent working interest in the Long Lake and three other project areas in northeastern Alberta province, Canada.