COSL Cinches Acquisition of Awilco, Strengthens Norwegian Position
China Oilfield Services Limited has announced that on September 22, 2008, the Company successfully completed its RMB17.1 billion acquisition into all shares of the Norwegian offshore drilling company Awilco Offshore ASA.
This is the largest 100%-stake overseas acquisition in the non-oil-and-gas category accomplished in the energy sector in China by value to date, and one that is of the highest strategic importance and commands the highest inscription of technical know-how. From now on, the once-Oslo-listed Awilco is included as part of COSL Norwegian AS, the COSL subsidiary in Norway.
Alongside with the hosting of a handover ceremony, the Company has sent a delegation to Norway to implement a plan to integrate operations of the two companies. Successful completion of this acquisition will see COSL inherit offshore drilling facilities with subcontracting services contracts attached and rich experiences of Awilco's incumbent international business management team.
Fu Chengyu, Chairman and CEO of CNOOC Ltd. and Chairman of COSL and Yuan Guangyu, Vice Chairman, CEO and President of COSL, visited relevant government authorities and StatoilHydro ASA in the Kingdom of Norway on September 22, 2008 and received unanimous support in favor of the Awilco acquisition.
Fu and Yuan, Zhou Ping, Economic and Commercial Counsellor at the Embassy of the People's Republic of China in the Kingdom of Norway, Olav Akselsen, a member of the Norwegian Parliament and Chairman of the country’s Standing Committee on Foreign Affairs and Sigurd E. Thorvildsen, Chairman of the Board of Directors of Awilco Offshore ASA, spoke in the handover ceremony and expressed their gratitude towards the successful completion of the acquisition.
In his capacity as COSL's chairman, Fu said China has been maintaining excellent relationship with Norway in the area of offshore oil industry ever since China implemented its reform and open policy. COSL's acquisition into Awilco will create a win-win situation for shareholders of both companies.
Fu added that the successful conclusion of the Awilco acquisition will allow COSL to provide more and better services to its partners and commercial clients in Norway. At the same time, COSL aspires to accommodate itself into the new operating environment and proactively fulfils its responsibility as a corporate citizen in Norway.
In his speech COSL CEO and President Yuan invited the incumbent management team of Awilco to join the Company and work together with the China-based colleagues to contribute to the creation of a bright future for COSL as a whole. The incumbent Awilco senior management team has expressed their intention to join COSL, following the footsteps of other team members.
COSL's goal is to become one of the top players of the world's oilfield services industry by the year 2020. Upon completion of the acquisition, COSL will establish the world's 8th largest rig fleet consisting of 34 operating rigs (including rigs under construction). A significant proportion of the drilling platforms are ready to engage in service contracts in the North Sea.
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Company: Awilco AS more info
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