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9 Pages

CNOOC acquires OPTI for US$2.1 billion


CNOOC acquires OPTI for US$2.1 billion

Report summary

In the first significant oil sands acquisition of 2011, CNOOC Ltd has acquired OPTI Canada in a deal worth US$2.1 billion (Ca$2 billion). Under Wood Mackenzie's base case assumptions, we value OPTI's portfolio at US$3.5 billion (NPV10, discounted to 1 September 2011). OPTI's only producing asset is a 35% stake in the Nexen-operated Long Lake development. The project, which achieved first production in 2008, includes a Steam Assisted Gravity Drainage (SAGD) bitumen extraction ...

What's included?

This report includes 1 file(s)

  • CNOOC acquires OPTI for US$2.1 billion PDF - 494.78 KB 9 Pages, 7 Tables, 3 Figures

Description

The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
    • Long Lake and Kinosis
    • Leismer and Cottonwood
    • Production problems
    • Upgrader
  • Deal analysis
  • Upsides and risks
    • Upsides
    • Risks
  • Strategic rationale
    • CNOOC Ltd
    • OPTI Canada
  • Oil & gas pricing and assumptions

In this report there are 10 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Upstream assets: Table 1
  • Deal analysis
    • US$ per bbl vs comparable deals; and NPV Price Sensitivities
    • Deal analysis: Table 1
    • Deal analysis: Table 2
  • Upsides and risks
  • Strategic rationale
    • CNOOC overseas entitlement production forecast
    • Strategic rationale: Table 1
    • OPTI capex and production - Wood Mackenzie Q4 2008 vs current estimates
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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