It is reported that CNOOC canceled plans to purchase a 60% stake in Pan American Energy from BP.

Last May, the company successfully expanded into the South American market by acquiring a 50% stake in Argentina based oil and gas firm, Bridas Corporation for USD 3.1 billion resulting in a 20% indirect interest in PAE the second largest refinery in Argentina.

BP and Bridas signed an agreement in November to jointly purchase a 60% stake in PAE for USD 7.06 billion and this deal was expected to be completed by the first half of 2011.

Bridas decided to terminate the transaction because certain prerequisites had not been met and will still conduct business with PAE. Previously, Sinopec USD 7.24 billion takeover of ADDAX in 2009 was the largest overseas acquisition by a Chinese refinery.

According to a BP spokesman, the firm has no urgent need to sell its PAE shares, especially since the asset value continues to increase due to rising oil prices.

(Sourced from Beijing Times)