Don't cry for me

15 March 2010 By Fiona Maharg-Bravo

The Chinese oil giant is paying $3.1 billion for an indirect stake in Argentina’s secondlargest oil and gas group. The deal looks a pricey and risky way for China to satisfy its appetite for natural resources. But China’s broader links with Argentina may justify the gamble.

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CNOOC, China's stateowned energy company , will take a 50 percent stake in Argentina's Bridas for $3.1 billion.

Bridas owns a 40 percent stake Pan American Energy, an Argentinafocused oil and gas producer that is 60 percent owned by BP , the UK oil and gas major. Pan American has output of around 220,000 barrels of oil equivalent (boe) per day, equally split between oil and gas. It also has interests in Bolivia and Chile.

The acquisition will raise CNOOC's proven reserves by 318 million boe and average daily output by 46,000 boe, the company's president Yang Hua said on a media teleconference on March 15.

Bridas is a private company, owned by the family of Argentine tycoon Carlos Bulgheroni.

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