(EnergyAsia, July 21 2011, Thursday) — China’s largest offshore oil producer, CNOOC Limited, has swooped in to acquire bankrupt oilsands company OPTI Canada Inc for US$2.1 billion in cash and debt.

Wholly-owned subsidiary CNOOC Luxembourg will pay US$34 million in cash for the Calgary, Alberta company’s shares, US$1.18 billion for some notes and assume US$825 million of debt, said OPTI, which filed for bankruptcy on July 13 after running out of cash.

OPTI is developing the Long Lake project in Alberta to produce 72,000 b/d of oil sands from the steam assisted gravity drainage (SAGD) method integrated with an upgrading facility. The upgrader unit will use its proprietary OrCrude™ process, combined with commercially available hydrocracking and gasification. Through gasification, this configuration substantially reduces the exposure to and the need to purchase natural gas.

OPTI, which owns a 35% stake in the project, said it is designed to produce up to 58,500 b/d of primarily 39 degree API premium low-sulphur crude that will sell at a price similar to West Texas Intermediate (WTI) crude oil. Nexen Inc, the majority 65%-shareholder is the project’s sole operator.

OPTI said its board voted unanimously in favour of CNOOC’s offer after determining that it was in its best interest, but shareholders of both companies, and Canadian regulators will still have to give final approval.

The transaction will be effected by way of a plan of arrangement through concurrent proceedings under the Companies’ Creditors Arrangement Act and the Canada Business Corporations Act. OPTI said its creditors and project operator, Nexen Inc, will be duly paid.

Chris Slubicki, OPTI’s President and CEO, said:

“We are very pleased with this transaction and believe it is in OPTI’s best interest. CNOOC Limited is a technically experienced and well-capitalized company that is equipped to support further development at Long Lake and future expansions in the Canadian oil sands.”

Yang Hua, CNOOC Limited’s CNOOC Limited, said:

“The transaction strengthens our Canadian presence in the oil sands business. We believe that upside potential of the assets will facilitate local energy supply and our production growth in the long term.”