Cnooc may snag 50% of Argentine oil producer

BEIJING - Cnooc Ltd, China's largest offshore oil and gas producer, said on Sunday it will pay $3.1 billion to acquire a 50 percent stake in Argentine oil producer Bridas Corp, a deal analysts said will add to the company's reserves and production substantially.

"It is not only significant as a positive, long-term business strategy, but also will serve to add substantially to Cnooc's production and reserves immediately," said Frank Gong, vice-chairman of China investment banking at JP Morgan. The company is the sole financial adviser to Cnooc in the deal.

Based on 2009 statistics, the deal would increase Cnooc's proven reserves and average daily production by 318 million barrels of oil equivalent (BOE) and 46,000 BOE respectively, said a company statement.