COSL offers $2.5b to buy AWO
On July 7th China Oilfield Services Ltd (COSL) decided to offer 85 kroner a share in cash to buy Norwegian company Awilco Offshore ASA (AWO). The offered price is 18.7 percent over the closing price of AWO shares on July 4.
COSL owns and operates the largest and most diverse offshore fleet in China, including 75 support vessels and four oil tankers, five chemical tankers, 8 seismic vessels and 4 geotech survey vessels. Besides, it operates 15 drilling rigs, including 11 jack-ups and 3 semi-submersibles while operating 1 leased jack-up rig. AWO is an international offshore drilling contractor owning and operating 5 jack-up drilling rigs and 2 accommodation units, another 3 jack-up drilling rigs and 3 semi-submersible drilling rigs under construction, and an option of constructing 2 semi-submersible drilling rigs. The combination of COSL and AWO would create the world’s eighth largest rig fleet, consisting of 34 operated rigs (including rigs under construction) with operation and growth opportunities in most major international markets.
CFO of COSL said that the company is seeking assets in Southeast Asia, the Middle East, Africa, North America and Russia. And the company statement said that AWO’s modern high-specification rigs and cutting-edge technology for offshore drilling was a good strategic fit for COSL pursuant to its globalization and growth strategies. The company’s profit were up 98 percent to 2.24 billion yuan in 2007 on rising business revenue, with four of its main businesses, including drilling, marine and transportation, oilfield technology and geophysical survey hit record high.
China, the world’s second largest energy user, has stepped up its search for oil and gas at home and abroad to sustain its fast growth.
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