China Oilfield agrees to buy Norwegian offshore driller Awilco
China Oilfield Services Ltd, an arm of the CNOOC group, is expected to announce on Monday a deal to buy Norwegian offshore driller Awilco Offshore, marking the Chinese firm's first successful acquisition abroad, a source with direct knowledge of the agreement said.
The source did not give a price for the deal. Awilco's market capitalisation is $2.1 billion.
Trading in China Oilfield's shares was suspended on Monday and a company official told Reuters an announcement could be made around noon, while a press conference on the transaction would be held at 4:30 Hong Kong time today (0830 GMT).
Speculation of a deal between the two heated up a few weeks ago, reviving talk of more consolidation in the revved-up offshore industry.
The offshore services sector has been lifted by surging oil prices, which has pumped up demand for their work and more than compensated for rising labour and equipment costs.
Earlier this year, China Oilfield said Russia had rejected its $10 million bid to buy oil services firm STU from TNK-BP, smothering what would have been the Chinese firm's first acquisition abroad at the final hurdle.
China Oilfield, the country's biggest offshore services company and an affiliate of offshore specialist CNOOC Ltd, has said it views Russia, the Middle East and the Gulf of Mexico as strategic markets it needs to explore.
It already maintains a presence in Southeast Asia.
China Oilfield Chief Executive Yuan Guangyu told Reuters last year that the company was in advanced talks to buy another foreign firm, in a deal that would dwarf the STU transaction.
Awilco Offshore ASA has a fleet of five modern jack-up and two accommodation rigs. It also has six rigs under construction, including three semi-submersible units, all due for delivery this year or next, and options for two more new rigs.
The source did not give a price for the deal. Awilco's market capitalisation is $2.1 billion.
Trading in China Oilfield's shares was suspended on Monday and a company official told Reuters an announcement could be made around noon, while a press conference on the transaction would be held at 4:30 Hong Kong time today (0830 GMT).
Speculation of a deal between the two heated up a few weeks ago, reviving talk of more consolidation in the revved-up offshore industry.
The offshore services sector has been lifted by surging oil prices, which has pumped up demand for their work and more than compensated for rising labour and equipment costs.
Earlier this year, China Oilfield said Russia had rejected its $10 million bid to buy oil services firm STU from TNK-BP, smothering what would have been the Chinese firm's first acquisition abroad at the final hurdle.
China Oilfield, the country's biggest offshore services company and an affiliate of offshore specialist CNOOC Ltd, has said it views Russia, the Middle East and the Gulf of Mexico as strategic markets it needs to explore.
It already maintains a presence in Southeast Asia.
China Oilfield Chief Executive Yuan Guangyu told Reuters last year that the company was in advanced talks to buy another foreign firm, in a deal that would dwarf the STU transaction.
Awilco Offshore ASA has a fleet of five modern jack-up and two accommodation rigs. It also has six rigs under construction, including three semi-submersible units, all due for delivery this year or next, and options for two more new rigs.