PetroChina announces the acquisition of Devon Energy's Indonesian operations

abarrelfullabarrelfull wrote on 27 Jul 2015 06:29
Tags:


2002-04-15
  
On 15 April 2002 PetroChina announces that it has entered into an agreement to acquire Devon Energy's Indonesian oil and gas operations pursuant to an agreement signed on 12 April 2002.

PetroChina will pay US$216million for proven working interest reserves of 106mmboe plus probable working interest reserves of 57mmboe as determined by PetroChina's independent reserves engineers. The implied proven and proven plus probable reserve transaction multiples are estimated at US$2.04/boe and US$1.33/boe respectively.

PetroChina believes that operations are a combination of producing oil fields and contracted producing gas fields with expected 2002 equity production of 17,100boe/d and forecast 2003equity production of 22,200boe/d.

PetroChina expects to become sole operator of 5 of the 6 properties upon consummation of this transaction.

Mr. Huang Yan, President of PetroChina, commented, "with this first transaction PetroChina has entered a phase of expanding, rationalizing and high-grading its upstream portfolio through international acquisition. Before this acquisition, PetroChina has not owned any overseas assets".

"PetroChina will undertake international acquisitions that create value for shareholders and improve upstream portfolio returns and growth prospects. PetroChina's international expansion will be highly focused and will look to establish core areas of clustered, high quality operations with a strong reserves base and material production growth. PetroChina will focus on opportunities in basins, plays or technologies where PetroChina has specific commercial and competitive advantage," said Mr. Huang Yan.

Goldman Sachs acted as financial advisor and Freshfields Bruckhaus Deringer acted as legal advisor to PetroChina on the acquisition.

Assets Acquired:


Related News

Looking for information on the E&P sector?


Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License