(Adds details of businesses, comments from CEO)
By Charlie Zhu
HONG KONG Aug 15 Brightoil Petroleum Holdings
Ltd, which just completed a $1.05 billion purchase of
Anadarko Petroleum Corp's oilfield stakes in China, said
it was seeking to make another major upstream acquisition over
the next 12 months.
"We are trying to emulate what we have just done," Chief
Executive Officer Bruce Yung told Reuters on Friday. "We want to
become a resource-focused company."
Brightoil, whose international oil trading and bunkering
businesses have been hit hard by the global financial crisis, is
moving to transform itself into an upstream-focusd company.
It is already in talks for potential acquisitions of oil and
gas-producing assets in China, and once an acquisition agreement
is reached, Brightoil would fund it with both debt and equity
capital, Yung said.
The Hong Kong-listed company does not rule out the
possibility of issuing new shares, he said, adding that Sit
Kwong Lam, Brightoil's founder and chairman, does not object to
the dilution of his nearly 75 percent stake due to any new share
"He certainly does not mind to see a dilution of his stake,
as long as he remains the majority shareholder of the company,"
Brightoil said in February that it had agreed to buy
Anadarko Petroleum's stakes in two oil blocks in Bohai Bay off
China's northeast coast. It completed the deal, mostly funded
with debt, last week.
More U.S. oil companies are seeking to sell their oilfield
stakes in China and elsewhere to raise capital to develop shale
oil projects at home, Yung said. The shift in strategy is
coinciding with an expiry of some of their oilfield production
sharing contracts in China, under which they must shift the
operatorship of the oilfields back to China - making the
projects less attractive to the foreign companies.
"This is offering us a great window of opportunity," said
Yung, an energy industry veteran who has held management
positions at international energy firms like BP and
Brightoil - currently with a daily oil and gas production of
25,000 barrels oil equivalent - will also consider bringing a
partner into its shipping business or "monetising" parts of the
assets to reinforce upstream investment in China and reduce
exposure to the volatile business, he said.
Brightoil, which has a market value of $3.3 billion,
currently owns nine oil tankers, including five VLCCs (very
large crude carriers).
It is the third-largest marine fuel supplier by volume in
Singapore, which is the largest bunkering port in the world.
Last year, the firm's trading and bunkering business
expanded into crude oil, diesel and petrochemicals, building on
its shipping fuel trading roots.
(Reporting by Charlie Zhu; Editing by Miral Fahmy and Ryan Woo)