The largest privately held gold mining group in the world announced a $500-million bid for a Texas oil and gas company.
In a statement on Tuesday, CNOOC Resources said it has signed a $5.9-billion deal with Houston-based Exploration and Production Company of America Inc. for the production rights in the Bakken formation in North Dakota.
The group also announced it will spend $100 million to buy the rights to extract natural gas in the Marcellus shale formation in Pennsylvania.
The announcement comes as CNOOP continues to grapple with low prices for its oil and natural gas, which is why it is targeting Houston for future drilling in the U.S. shale.
But oil and coal prices are expected to stay relatively low until the end of this year, meaning CNOO is not looking to make big gains in a few years.