CNOOC Acquires Repsol-YPF's Indonesian Assets

CNOOC Limited announced that the group has agreed with the Repsol-YPF group to acquire 9 Repsol subsidiaries ("Target Companies") owning working interests in five oil and gas properties in Indonesia. The total consideration shall, subject to adjustment, be US$585 million in cash. The acquisition is pending customary closing conditions.

The main business of the Target Companies is the exploration, development and production of oil and gas offshore and onshore Indonesia. The acquisition will make CNOOC Limited the largest offshore oil producer in Indonesia. Estimated net working interest proved reserves to be acquired total approximately 360 million barrels-of-oil equivalent. The assets to be acquired include an aggregate 65.34% interest in the Southeast Sumatra PSC, an aggregate 36.72% interest in the Offshore Northwest Java PSC, a 25.00% interest in the West Madura PSC, a 50.00% interest in the Poleng TAC and a 16.70% interest in the Blora PSC.

Following completion of the acquisition, the Southeast Sumatra PSC will be operated and majority owned by CNOOC Limited. Offshore Northwest Java is operated by a member of the BP p.l.c group.

CNOOC Limited currently has a presence in Indonesia through a 39.51% participating interest in the Malacca Strait PSC. Merrill Lynch (Asia Pacific) Limited is exclusive advisor to the Company in connection with the acquisition.