Cnooc, Bridas Extend Talks for PanAm Stake

The joint venture between China National Offshore Oil Corporation’s (CNOOC) and Argentina’s Bridas has extended its talks with BP to acquire the British oil company’s majority stake in Pan American Energy for $7.06bn in cash. The parties had set November 1 as a final date for an agreement, but they decided to continue talks as regulators in China and Argentina work on a final approval. A BP spokesman said no new tentative final date has been agreed between the parties and noted that a final closing of the sale will happen sometime in 2012. The sale of BP’s 60% stake in the Argentine oil company was agreed in late 2010, after which Bridas paid BP $3.53bn as an initial deposit. The agreement states that should the sale fall through, BP would return the deposit and pay an additional $700m for “amendments to the Pan American Energy limited liability company agreement,” according to a statement in BP’s recently released 3Q 2011 earnings report. The sale of its stake in Pan American Energy was agreed as part of the company’s strategy of selling a number of worldwide assets following the Gulf of Mexico oil spill. Standard Chartered is advising BP.