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6 Pages

CNOOC buys Devon interests in South China Sea


CNOOC buys Devon interests in South China Sea

Report summary

CNOOC Ltd is to acquire Devon's 24.5% stake in Block 15/34, offshore China, for a consideration of US$515 million. The PSC contains three producing oil fields: Panyu 4-2, 5-1 and 11-6. CNOOC Ltd already holds a 51% operating interest. Our base case valuation of the acquired stake is US$413 million (NPV10, discounted to May 2010), which equates to an Implied Long-term Oil Price of US$93/bbl. Although this is at the top end of the market, there is scope for upside. Output from the ...

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  • CNOOC buys Devon interests in South China Sea PDF - 529.19 KB 6 Pages, 6 Tables, 1 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
  • Upstream assets
  • Deal analysis
  • Strategic rationale
    • Devon
    • CNOOC Ltd
  • Oil & gas pricing and assumptions

In this report there are 7 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Upstream assets
    • Upstream assets: Table 1
    • Map of Block 15-34
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
  • Strategic rationale
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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