A general view of China National Offshore Oil Corporation's (CNOOC) oil refinery in Huizhou, Guangdong province July 28, 2009. [Agencies]

Bridas Corporation, with oil and gas exploration and production operations in Argentina, Bolivia and Chile, is now a 50-50 joint venture between CNOOC Ltd and BEH.

The transaction will increase CNOOC Ltd's proven reserves and average daily production by 318 million barrels of oil equivalent (BOE) and 46,000 BOE, respectively, based on 2009 figures.

CNOOC Ltd and BEH will make management decisions jointly.

The transaction is in line with CNOOC Ltd's growth strategy and expands its reach into Latin America and establishes a foundation for future growth in the region and other countries, Fu Chengyu, Chairman and Chief Executive Officer of the CNOOC Ltd, said.

Incorporated in Hong Kong, CNOOC Ltd is the listed subsidiary of China National Offshore Oil Corporation, China's largest offshore oil producer. The company produced 227.7 million BOE in 2009.