Brightoil Upstream Transformation Stalls as Newfield Pulls Out of Deal

by Ship & Bunker News Team
Thursday January 15, 2015

Brightoil Petroleum Holdings Ltd.'s (Brightoil) plans for upstream expansion have stalled as Newfield Exploration Co. (Newfield) pulled out of a major asset sale, Argus Media reports.

Hong Kong-based bunker supplier Brightoil said earlier this year it planned to purchase upstream assets from Newfield in a deal which some estimates suggested could have been worth $800 million.

However, a dramatic shift in the oil price changed the economics of the deal.

"The recent and significant pull back in global oil prices created headwinds for our China sales process," said Newfield Executive Vice President Larry Massaro.

"Although our intent was to monetise the asset, it was not a sale at any price."

The assets in question are said to be stakes in two joint ventures between U.S.-based Newfield and China's CNOOC, including a 12 percent stake in Bohai Bay block 05/36 and a 49 percent share of Pearl River block 16/05.

The blocks are said to have yielded Newfield 3,250 barrels of crude oil per day in the fourth quarter of 2014.

Brightoil purchased similar upstream operations from Anadarko Petroleum Corp. for $1.05 billion in August 2014 as part of its expansion in that direction.

Brightoil last year also said it planned to spend $18 million to expand its fleet of bunker tankers.

Ship & Bunker News Team
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