Herbert Smith Freehills has taken the lead in advising Hong Kong-based and-listed energy and resources company Brightoil Petroleum (Holdings) Limited on its successful US$1.1 billion cash acquisition of Kerr-McGee China Petroleum Ltd., the China unit of Texas-based Anadarko Petroleum Corporation, one of the world’s biggest independent exploration and production companies.
The deal will give Brightoil Anadarko's entire 40% and 29% interests in two blocks in Bohai Bay, northeast China. The two blocks produced about 32,000 barrels of crude oil a day in 2013. Additionally Brightoil will gain a 40% interest in of the offshore block of 04/36, which covers an area of 124 square kilometres, and also a 29% stake in the area labeled as 05/36, which covers an area of 88 square kilometres.
The Herbert Smith Freehills team advising Brightoil was led by Hong Kong-based energy partner Hilary Lau, who was assisted by energy team senior associates Calvin Ho and Paul Tempone, and associates Jie Li, James Zhang and David Dai. Hilary was also supported by Beijing Office head Tom Chau, Beijing-based energy partner Monica Sun and Hong Kong finance partner Alexander Aitken. Senior associates Sherry Lai and Lawrence Wang in corporate, and Cecely Hugh in finance also assisted on the transaction.
Hilary Lau commented: "This is certainly an important milestone for our client as its latest acquisition represents its major push into the upstream segment, in which we have the expertise and deep experience in. We are pleased to have assisted Brightoil on such a strategic business venture, advising them on their first steps diversifying into an integrated oil and gas company with both upstream producing business as well as oil trading."
Herbert Smith Freehills' Asia upstream deal experience includes the following deals:
* PetroChina Company Limited's acquisition of a 25% stake in phase one of the West Qurna field
* Thailand state-owned PTT Exploration and Production Public Company Limited's US$1 billion acquisition of oil and gas assets in Thailand from New York-based Hess Corporation
* Woodside Energy Limited's first two oil and gas exploration deals in the Republic of the Union of Myanmar
* Santos and GLNG on their development of the Gladstone LNG Project, which includes upstream coal seam gas fields, pipeline, LNG trains and port development
* China National Offshore Oil Corporation on its entry into a Heads of Agreement with BG Group for the US$1.93 billion purchase of an additional 40% interest in the first production train of the QCLNG project as well as other acquisition of equity interest in a number of upstream tenements
