Cnooc Ltd. is raising nearly $2 billion in a share sale to help fund its expansion plans.
Offshore staff
(Asia-Pacific) - Cnooc Ltd. is raising nearly $2 billion in a share sale to help fund its expansion plans, according to a deal term sheet obtained by Reuters.
A source close to the deal told Reuters that the deal was five times covered and the allocation split 60% to Asia, 25% to Europe, and 15% to the US.
Institutions accounted for about 70% of the demand.
Cnooc is paying $2.7 billion to South Atlantic Petroleum Ltd. for a 45% stake in offshore oil mining license 130 in Nigeria due to start pumping in 2008.
Cnooc will get 90.9% of the proceeds from the share sale, while China's National Social Security Fund will receive the remaining 9.1%.
