Chinese industrial conglomerate Fosun International Ltd. is buying Australia’s Roc Oil Co. Ltd. in an all-cash, A$474 million (US$441 million) transaction.
Sydney-based Roc Oil has assets from Australia to Malaysia, China, and the UK North Sea, produced 2.7 MMboe in 2013, and earned a net profit of US$45.2 million. Roc says its Chinese and Australian assets provide over 90% of production and revenue, as well as almost 90% of 2P Reserves (at 31 December 2013). Map of Roc Oil assets at right.
Roc Oil operates:
- Cliff Head oil field (pictured), offshore Perth Basin, Western Australia (42.5%);
- Zhao Dong oil fields, Bohai Bay, offshore China (C&D Oil Fields 24.5%; C4 Oil Field 11.667% unlisted; Zhanghai 39.2%); and
- Block 09/05, Bohai Bay, offshore China (100%).
Roc Oil has production interests in:
- Beibu Gulf, offshore China (ZW 6-12 and WZ 12-8 West, 19.6%);
- Blane oil field, North Sea (12.5%); and
- Enoch oil field, North Sea (12.0%).
Roc Oil was previously in merger discussions with Horizon Oil, but accepted Fosun's all-cash buyout offer of A$0.69/share on 4 August. Horizon's shareholders were scheduled to vote on 7 Aug on the proposed merger, which would have given Roc shareholders a 42% stake in the combined Horizon-Roc company.
"The reason for the company entering into the Bid Implementation Agreement, and the Proposed Transaction, is to enable the group to enter the upstream oil & gas industry and acquire oil & gas assets," Fosun said in a statement to the Hong Kong stock exchange
Roc Oil has stakes in projects backed by PetroChina and CNOOC. Fosun will get assets in China’s Bohai Bay and Beibu Gulf, “providing stable upstream income and a learning ground for further exploration in the region as China moves more into offshore production,” said Wu Fei, a Hong Kong-based energy analyst at Bocom International Securities.
Related OE news:
23 July 2014: Petronas Bentara field sees first oil production
17 October 2013: CNOOC duo in production
10 October 2013: Roc completes 3D survey off China
22 March 2013: Beibu in production
5 Noember 2012: New Beibu find for Roc Oil