China’s offshore oil company, CNOOC tries the U.S. market

Added by on October 13, 2010

An oil producer from China struck a $1.1 billion deal with the U.S. for a stake in the gas and shale oil field. CNOOC is giving the U.S. political climate a try for the first time since it failed to secure a deal with Unocal back in 2005.

Chesapeake Energy

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The news of the deal with Chesapeake Energy Corp caused a 3-year share hit and there is potential for more as the company plans to meet the demand from its growing economy.

Gordon Kwan who is an Asian energy researcher for Mirae Asset Securities said that the company is expected to extend its horizons by getting shares from Brazil’s deepwater and Canadian oil-sands. He also said that Angola and Nigeria could be eye-catching targets.

CNOOC is also looking to buy shares from OGX SA which is a Brazilian oil company.

Opti Canada Inc and Nexen Inc however show no interest with any deal from the company. Thomson Reuter’s data shows that the company has spent $18.6 billion dollars in all the deals, which has surpassed the $15.8 billion it used for the year 2009.

The company’s move to the U.S market comes as a surprise to many as most had considered it off limits.

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