NEW YORK, Nov. 28 (UPI) -- British oil producer BP is selling its majority stake in Pan American Energy to Bridas for $7.1 billion in cash, the companies announced Sunday.
Pan American Energy is one of the largest energy companies in Argentina, and the sale will bolster the fund BP is using to pay off damages caused by the well blowout in the Gulf of Mexico earlier this year, The New York Times said.
The transaction did not include PAE's holdings in Bolivia.
The stock deal also expands China's role in Western Hemisphere energy development. Bridas is a partnership of China National Offshore Oil Corp. and Bridas Holdings of Argentina. The Times said the Pan American deal will raise CNOOC's overall oil production to about 68,000 barrels of oil equivalent per day.
"After the transaction and with the world-class oil and gas asset portfolio and existing excellent management team of PAE, we'll be able to enhance our presence in the region, which will benefit us in the short term and long run," CNOOC Vice Chairman and Chief Executive Officer Yang Hua said in a written statement.