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China National bids $2.5B for Awilco Offshore

By Associated Press
July 7, 2008 | Comments (0)

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China National Offshore Oil Corp.'s oil-services company said Monday it will offer about $2.5 billion for Norway's Awilco Offshore ASA.

The cash bid represents an 18.7 percent premium over the closing price of Awilco's stock on Friday, CNOOC's China Oilfield Services Ltd. said in a statement.

Shares of China Oilfield were suspended from Monday pending the announcement.

CNOOC is China's third-largest oil producer. China's oil companies have been looking to expand in the oil service industry amid rising oil prices and Chinese demand for energy.

China Oilfield said the acquisition would help it increase its number of drilling rigs and tap more international markets.

Awilco, which operates oil and gas drilling rigs, already has a presence in Australia, Vietnam, Saudi Arabia and the Mediterranean region, according to China Oilfield's filing.

A representative for China Oilfield declined to comment.

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