Conoco to buy Gulf Canada

World Oil, July, 2001

Joining the stream of firms desiring to capitalize on high U.S. natural gas prices, Conoco said it will purchase Gulf Canada Resources for $6.3 billion in cash and assumed debt. The deal, which is expected to close during the third quarter of this year, will make Conoco the seventh-largest North American gas producer.

In fact, the firm's North American natural gas production and proved reserve base will increase by 50%. The acquisition allows Conoco to add nearly 1.4 Tcf of net proved gas reserves and an additional 2.9 net Tcf of probable gas reserves in North America. The Houston-based firm will more than double its South East Asian proved reserves to 365 million boe, and more than triple its total net production in the region. South East Asia will become a fourth core area for Conoco, through Gulf Canada's 72% interest in Gulf Indonesia Resources Ltd.