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Brightoil financing acquisition of Bohai oil blocks through cash and loans

20th February 2014

Brightoil Petroleum Holdings Ltd has announced plans to finance its acquisition of Anadarko Petroleum Corp's oil blocks in China's Bohai Bay through cash and loans from the China Development Bank

Brightoil financing aqusition ofAnadarko's oil blocks in China's Bohai Bay via cash and loans

Brightoil Petroleum Holdings Ltd. has announced plans to finance its acquisition of Anadarko Petroleum Corp's oil blocks in China's Bohai Bay through cash and loans from the China Development Bank (CDB), Reuters has reported.

Chairman and CEO of Brightoil, Sit Kwong Lam, revealed that 30 per cent would be financed through internal resources and the remainder with CDB loans.

The company announced earlier this week that it had agreed to buy Anadarko's stakes in two oil blocks in Bohai Bay for USD 1.08bn.

Anadarko Petroleum Corporation recently entered into a stock purchase agreement with a subsidiary of Brightoil Petroleum, where Anadarko will divest its Chinese subsidiary for USD 1.075bn.

Brightoil has also disclosed that it obtained a USD 4bn credit line from the China Development Bank to assist in its business, development and future acquisitions.

Lam admitted that the company had only used USD 700m of that amount.

Anadarko is an independent oil and natural gas exploration and production company, with 2.56 billion barrels of oil equivalent (BBOE) of proved reserves as of the end of 2012. The company is also one of the biggest operators in the deepwater Gulf of Mexico, and has production operations in Alaska, Algeria and Ghana with additional exploration opportunities in West Africa, Mozambique, Kenya, South Africa, Colombia, Guyana, New Zealand and China. 

Brightoil Petroleum Holdings Limited is mainly involved in the global marine bunkering chain business, oil storage and marine transportation as well as natural gas development and production. Currently, the company is developing two oil storage facilities. Both projects are located on Dalian Changxing Island and Zhoushan Waidiao Island.

 

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