Chinese fuel supplier Brightoil Petroleum (Brightoil) will acquire Win Business Petroleum (Win Business) for HK$581.25 million ($74.71 million), a move that will significantly expand the company’s upstream gas assets, according to a company filing with the Hong Kong Stock Exchange (HKSE) on Friday.
Win Business, which engages in gas exploration and production, is wholly owned by Dr. Sit Kwong Lam, the founder and chairman of HKSE-listed Brightoil. In its ’2011 Billionaires List’, Forbes ranked Sit as the 408th richest person in the world with a net worth of $2.8 billion as of March this year.
Win Business’s only asset is the right to develop and produce gas at the Tarim Basin’s Dina 1 Block in the Xinjiang Uyghur Autonomous Region. The company signed a production sharing contract (PSC) for Dina 1 with state-owned energy giant China National Petroleum Corp. (CNPC) in April 2008.
According to the filing, Dina 1 has proved plus probable (2P) gas reserves of 3.62 billion cubic metres and 2P condensate reserves of 1.8 million stock tank barrels (MMstb). The PSC stipulates that Win Business is entitled to 2.08 bcm and 1 MMstb of gas and condensate respectively, with an aggregate value of $100 million.
Under a separate contract signed June last year, Win Business agreed to sell gas produced at Dina 1 under the PSC exclusively to CNPC.
Win Business intended to invest $92.17 million to develop Dina 1, which spans roughly 75 square km, the filing said.
Brightoil is principally engaged in marine bunkering, oil storage and wharf terminal loading and unloading, but the company views the exploration and production of gas as an important diversification of its business, Ella Mak, a Brightoil representative, told Interfax on 11 November.
The acquisition will enable Brightoil to take advantage of rising gas prices and China’s booming gas demand, Mak said, adding that preliminary production at Dina 1 has already begun.
Mak said that Dina 1 lies near the 157.97 square km Tuzi Block in Xinjiang’s Luntai County, which Brightoil is also developing. In August 2009, Brightoil signed a 30 year PSC with CNPC to jointly develop Tuzi, which is estimated to hold reserves of 22.1 bcm.
Brightoil reported revenue of $5.08 billion in the year ending 30 June, according to its annual report released on 24 October.
Brightoil Petroleum moves to expand upstream gas assets
Chinese fuel supplier Brightoil Petroleum (Brightoil) will acquire Win Business Petroleum (Win Business) for HK$581.25 million ($74.71 million), a move that will significantly expand the company’s upstream gas assets, according to a company filing with the Hong Kong Stock Exchange (HKSE) on Friday.
Win Business, which engages in gas exploration and production, is wholly owned by Dr. Sit Kwong Lam, the founder and chairman of HKSE-listed Brightoil. In its ’2011 Billionaires List’, Forbes ranked Sit as the 408th richest person in the world with a net worth of $2.8 billion as of March this year.
Win Business’s only asset is the right to develop and produce gas at the Tarim Basin’s Dina 1 Block in the Xinjiang Uyghur Autonomous Region. The company signed a production sharing contract (PSC) for Dina 1 with state-owned energy giant China National Petroleum Corp. (CNPC) in April 2008.
According to the filing, Dina 1 has proved plus probable (2P) gas reserves of 3.62 billion cubic metres and 2P condensate reserves of 1.8 million stock tank barrels (MMstb). The PSC stipulates that Win Business is entitled to 2.08 bcm and 1 MMstb of gas and condensate respectively, with an aggregate value of $100 million.
Under a separate contract signed June last year, Win Business agreed to sell gas produced at Dina 1 under the PSC exclusively to CNPC.
Win Business intended to invest $92.17 million to develop Dina 1, which spans roughly 75 square km, the filing said.
Brightoil is principally engaged in marine bunkering, oil storage and wharf terminal loading and unloading, but the company views the exploration and production of gas as an important diversification of its business, Ella Mak, a Brightoil representative, told Interfax on 11 November.
The acquisition will enable Brightoil to take advantage of rising gas prices and China’s booming gas demand, Mak said, adding that preliminary production at Dina 1 has already begun.
Mak said that Dina 1 lies near the 157.97 square km Tuzi Block in Xinjiang’s Luntai County, which Brightoil is also developing. In August 2009, Brightoil signed a 30 year PSC with CNPC to jointly develop Tuzi, which is estimated to hold reserves of 22.1 bcm.
Brightoil reported revenue of $5.08 billion in the year ending 30 June, according to its annual report released on 24 October.