China’s largest offshore oil services company agreed on July 7 to buy a Norwegian rival, Awilco offshore, for about $2.5 billion to increase its drilling capacity and tap overseas markets. The deal increases the number of drilling rigs China Oilfield (CNOOC) owns to 22 from 15, with operations spanning Europe and Asia. It also gives it access to international management expertise and technology and help China Oilfield enter the high-end North Sea drilling market1.

• 1. “Chinese offshore Oil Company to acquire competitor in Norway,” The New York Times, July 8, 2008, at http://www.nytimes.com/2008/07/08/business/worldbusiness/08rig.html?r=1&...