Cnooc in $3.1 billion Argentine joint venture

Hong Kong-listed Cnooc has partnered with Bridas Energy Holdings BEH by investing $3.1 billion in a subsidiary of the Argentine oil producer.

Cnooc is buying a 50% stake in Bridas Corporation, which has oil and gas exploration and production activities in Argentina, Bolivia and Chile. Bridas also owns 40% in Pan American Energy, the second-largest Argentine exploration and production company, which is jointly owned by Bridas and British oil and gas firm BP. The deal will add 318 million barrels of oil equivalent of proven reserves to Cnooc's 2.15 billion barrel reserve base as of December 2008.

Cnooc is 64.4%-owned by Chinese state-owned enterprise China National Offshore Oil Corporation. This is the largest...