The Singapore office of Herbert Smith had advised the China National Offshore Oil Corporation (CNOOC), China’s largest producer of offshore crude oil and natural gas, in the sale of its 36.72 percent working interest in the Offshore Northwest Java Production Sharing Contract (ONWJ PSC) in Indonesia for $212 million to EMP International (BVI) Limited, an affiliate of the Indonesian mining company PT Energi Mega Persada.
This move is part of CNOOC’s recent strategy of shedding low-profit assets, and acquiring high-return properties in their place. The oil giant recently acquired Canadian oil sands operator OPTI Canada Inc for $2.1 billion, and took a 33.3 percent undivided interest in Chesapeake Energy Corp's Niobrara project in the U.S. At the end of 2010, CNOOC’s share of net proved reserves in ONWJ PSC was 22.26 million barrels of oil equivalent (BOE), the daily average production of oil and gas from ONWJ PSC for the first nine months of 2011 was approximately 62,000 BOE, and the net entitlement to CNOOC Ltd was approximately 14,000 BOE per day.
The Singapore team of Herbert Smith was led by partner Lewis McDonald and senior associate Philip Morgan, who are members of the firm's Southeast Asian energy team. Herbert Smith's associated firm in Indonesia, Hiswara Bunjamin & Tandjung, provided advice on the Indonesian aspects of the transaction.
"We are delighted to have assisted CNOOC Ltd on this deal, which builds on the upstream acquisition work we have executed for them in other parts of the world," said Lewis McDonald. ALB
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