China's biggest offshore oil producer CNOOC Ltd said on Sunday its 50 percent-owned unit Bridas Energy Holdings has determined to terminate a deal to buy BP Plc's 60 percent stake in Argentina-based oil and gas group Pan American Energy LLC (PAE). In a filing with the Hong Kong stock exchange, CNOOC said Bridas Energy sent to BP a letter on November 5 to terminate the deal, which was initially signed in November last year.
It gave no further details.
On October 25, CNOOC said Bridas Corp had not obtained the necessary regulatory approvals to complete the $7 billion bid, without giving further information. It had said November 1. was the deadline after which either party would have the right to terminate the agreement.
In a report dated October 27, Jefferies Group said CNOOC may have developed cold feet over the agreement because of the arbitrary and heavy handed nature of Argentina's government that has seen Western oil and gas companies exit the country.