China National Offshore Oil Corp. Ltd. has issued two tranches of debt: a $1.5 billion offering of 10-year notes, and 30-year bonds worth $500 million. The state-owned oil company has guaranteed the securities, which are being issued by a subsidiary.
According to a CNOOC statement, the company has stepped up its exploration and development activity, leading to a 58-percent increase in first-quarter spending compared with last year.
Davis Polk partner Eugene Gregor led a team advising CNOOC. Though based in Tokyo, Gregor has advised on a number of China-related capital markets deals. Last January, he also led a Davis Polk team advising the underwriters to CNOOC’s $2 billion offering of notes and bonds, with a similar structure to the recent deal.
Commerce & Finance was the issuer’s advisor on Chinese law. Hong Kong partner Ashley Davies of offshore law firm Walkers provided British Virgin Islands counsel to CNOOC.
The underwriters–Barclays PLC, BOC International Inc., and Citigroup Inc.–turned to Linklaters for legal advice. Hong Kong partners William Liu and David Ludwick led the firm’s team.