CNOOC Ltd, China's biggest offshore oil explorer, agreed to buy a 50 percent stake in Argentine producer Bridas Corp for $3.1 billion to meet demand in the world's fastest-growing major economy.

Bridas, controlled by Argentine businessman Carlos Bulgheroni, owns a 40 percent stake in Pan American Energy LLC, the country's largest crude oil exporter, and also has oil and gas assets in Chile and Bolivia, CNOOC said yesterday in a statement to Hong Kong's stock exchange. BP Plc, Europe's largest oil company, owns the remainder of Pan American.

China's oil and gas companies spent at least $13 billion on acquisitions since 2008 as the nation scours the globe for resources. The offer values Bridas's proven reserves around $10 a barrel, about half of what BP Plc paid Devon Energy Corp last week for assets in Brazil, the Gulf of Mexico and Azerbaijan, according to Sanford C Bernstein & Co analyst Neil Beveridge.

"This seems like a relatively attractive valuation and the acquisition is entirely in keeping with the Chinese government's policy of increasing oil reserves," Beveridge said by telephone from Hong Kong today. "It raises CNOOC's reserves by about 12 percent and also gives it an entry into Latin America."

China is the world's second-biggest energy consumer, after the US, and CNOOC estimates the Bridas investment will add 318 million barrels of reserves and also boost its average daily production by 46,000 barrels. Devon's assets may add 40,000 barrels a day for BP starting next year, based on current production, with "huge potential" for exploration, BP spokesman David Nicholas said March 11.

CNOOC reserves

According to Cnooc's website, the Beijing-based company had total proven reserves of about 2.52 billion barrels of oil equivalent at the end of 2008, and average daily production was 530,728 barrels of oil equivalent.

China's economic growth will accelerate to 8.8 percent this year, four times faster than that of the US, according to the United Nations. That's stoking Chinese demand for fuel in autos and industry.

"Given China's increasing relia