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CNOOC to expand into Bangladesh

09th August 2012

China’s oil and gas major CNOOC is mulling the acquisition of UK-based Tullow Oil’s interests in Bangladesh

CNOOC to expand into Bangladesh
CNOOC’s interest in Tullow’s assets in Bangladesh are the latest talk of an expansion in the making after the firm flexed its muscles in the global O&G arena with the Washington-unsettling acquisition of Canadian Nexen

China’s largest offshore oil producer, CNOOC is considering buying UK-based independent energy company Tullow Oil’s interests in Bangladesh, it emerged on Wednesday.

CNOOC is considering taking part in Bangladesh's next offshore bidding round scheduled for later this year, an industry insider told Platts. CNOOC was unsuccessful in the country’s 2008 auction of shallow water gas block SS-08-01.

China is forecast to more than double gas consumption by 2017, according to a June report by US Energy Information Agency. The country is vying for projects to boost its gas output.

Tullow Oil has a 30 per cent stake in Bangladesh's Bangora gas field near the capital city of Dhaka. Its gross output currently sits at 17,000 barrels of oil equivalent per day.

Tullow Oil plans to sell the entirety of its Asian assets, which are located in Bangladesh and Pakistan. It posted a sales revenue of USD 20.8 million in Asia in 2011, within a global sales revenue which totaled USD 2.3 billion.

CNOOC in February teamed up with France's Total in a USD 2.9 billion venture to acquire a third of Tullow Oil's share in three oil exploration areas in Uganda. Tullow Oil holds 55 licenses in 15 countries in Africa, according to the firm.

Tullow’s production for the full year is set to average between 80,000 and 84,000 barrels of oil equivalent per day, the firm said. Its major operations include the Jubilee discovery offshore Ghana,  whose gross production is expected to increase to 90,000 barrels of oil equivalent per day, in addition to the discovery of oil onshore Kenya.

The news on Wednesday of CNOOC’s interest in Tullow’s assets in Bangladesh are the latest talk of an overseas expansion after the firm flexed its muscles in the global O&G arena with the Washington-unsettling move to acquire of Canadian Nexen.

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