(EnergyAsia, February 20 2014, Thursday) — Hong Kong-listed oil trader and storage operator Brightoil Petroleum Holdings Ltd has made its long awaited move into the upstream sector by agreeing to acquire the Chinese assets of US firm Anadarko Petroleum for US$1.075 billion.

Brightoil, which has been struggling to reverse the fortunes of its downstream business, said it is acquiring two blocks in Bohai Bay that produced a total of 32,000 b/d of crude oil last year. The company reported a loss of HK$721 million in the financial year ended June 2013.

The two blocks located in northeastern China are operated by the country’s leading offshore producer, CNOOC Ltd.

Houston, Texas-based Anadarko is selling off non-core assets to focus on the booming shale sector in the US. It recently sold off a stake in a natural gas field off Mozambique and is reportedly trying to divest assets in Brazil.

“This transaction accelerates the recognition of value from a non-operated legacy asset and continues to demonstrate our commitment to active portfolio management,” said Anadarko chairman, President and CEO Al Walker.

The company said it had approximately 2.79 billion barrels-equivalent of proved reserves as of end 2013, making it one of the world’s largest independent exploration and production companies.