Bridas to Terminate the PAE Transaction

Nov 06, 2011, 05:48 ET from CNOOC Limited

HONG KONG, Nov. 6, 2011 /PRNewswire-Asia/ -- CNOOC Limited (the "Company", NYSE: CEO, SEHK: 0883) announced today that Bridas Corporation ("Bridas"), a 50/50% joint venture between CNOOC International Limited and Bridas Energy Holdings ("BEH"), informed the Company that it sent to BP PLC("BP") a letter on November 5 to terminate the transaction to acquire 60% equity interest in Pan American Energy("PAE") from BP.

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The aforesaid acquisition was entered into between BP and Bridas on 28 November 2010.

As a consequence of such termination, Bridas will continue with its current participation in PAE, which will continue to be governed in the same way that it was governed before.

Mr. Yang Hua, CEO of the Company said, "We were willing to strengthen our partnership with BEH and further expand our presence in Argentina through this transaction in the best interest of our shareholders. However, certain conditions precedent to the completion of the deal were not obtained as expected, and Bridas chose to terminate the transaction. In the future, CNOOC Limited will continue to look for overseas opportunities which could add value to our company both in short term and long run."

Notes to Editors:

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This press release includes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, including statements regarding expected future events, business prospectus or financial results. The words "believe," "intend," "expect," "anticipate," "project," "estimate," "plan," "predict," and similar expressions are intended to identify such forward-looking statements. These statements are based on assumptions and analysis made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that the Company believes reasonable under the circumstances. However, whether actual results and developments will meet the Company's expectations and predictions depends on a number of risks and uncertainties which could cause the actual results, performance and financial conditions to differ materially from the Company's expectations, including those associated with fluctuations in crude oil and natural gas prices, the exploration or development activities, the capital expenditure requirements, the business strategy, the highly competitive nature of the oil and natural gas industries, the foreign operations, environmental liabilities and compliance requirements, and economic and political conditions in the People's Republic of China. For a description of these and other risks and uncertainties, please see the documents the Company has filed from time to time with the United States Securities and Exchange Commission, including 2010 Annual Report on Form 20-F filed on April 29, 2011.

Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements. The Company cannot assure that the actual results or developments anticipated will be realized or, even if substantially realized, that they will have the expected effect on the Company, its business or operations.

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Mr. Jiang Yongzhi Joint Company Secretary and General Manager of Investor Relations Department CNOOC Limited Tel: +86-10-8452-1731 Fax: +86-10-8452-1441 E-mail:   Ms. Ding Jianchun Manager, Media / Public Relations CNOOC Limited Tel: +86-10-8452-2973 Fax: +86-10-8452-1441 E-mail:   Ms. Angela Hui Ketchum Newscan Public Relations Ltd Tel: +852-3141-8091 Fax: +852-2510-8199 E-mail: