Spanish oil giant Cepsa is to buy Canadian exploration firm Coastal Energy in a £1.4billion deal as it looks to expand its Far East operations.
Coastal Energy, which has operations in Thailand and Malaysia, saw its offshore production increase this year to more than 20,000 boed.
Cepsa, owned by Abu Dhabi’s International Petroleum Investment Company, will assume Coastal’s £30million debt as part of the deal.
“Coastal’s business comprises a high-quality portfolio of upstream assets located in Southeast Asia, operated by talented management and dedicated employees,” said Cepsa chief executive Pedro Miro.
“We believe that Coastal provides a tremendous foundation for furthering our E&P strategy.”
The deal marks Cepsa’s largest acquisition since 1999, and is expected to be completed early next year.