Hong Kong-listed Brightoil Petroleum Holdings Ltd. reached an agreement on February 18 with Texas-based Anadarko Petroleum Corp. to purchase 40 percent and 29 percent interests in two offshore blocks located in the Bohai Bay for $1.08 billion. The two blocks produced an average of 32,000 barrels of oil per day in 2013, according to a statement released by Brightoil.

Brightoil, one of the largest marine bunkering service providers in China, will diversify its earnings with this upstream acquisition. Currently, 98 percent of the company’s revenue comes from marine bunkering and the sale of petroleum products.

This reliance on marine bunkering and oil trading has hurt Brightoil financially as the company posted a $92.97 million loss for the financial year that ended in June 2013. Brightoil hopes to turn this around with Anadarko’s China assets, which earned a net profit of $80.1 million for fiscal year ending December 31, 2013.

Posted by Catherine Matacic