BUENOS AIRES -(Dow Jones)- Argentina oil and gas company Bridas Energy Holdings, or BEH, on Sunday confirmed that China National Offshore Oil Corporation Limited, or CNOOC (CEO), will take 50% stake in its Bridas Corporation subsidiary.

The two companies struck a preliminary agreement on Saturday and, if completed, BEH, which currently owns all of Bridas Corp., said it would share strategic and management decisions with CNOOC subsidiary CNOOC International Limited, BEH said in a statement.

BEH didn't put a price on the transaction. CNOOC has said it will pay $3.1 billion for the 50% stake.

Bridas said it has hydrocarbons operations in Argentina, Bolivia and Chile and is developing projects in different parts of the world. Its portfolio includes a 40% stake in Pan American Energy LLC, which operates in southern South America. The other 60% of Pan American is held by the U.K.'s BP PLC (BP.LN).

"This association will better position us to meet our growth plans in Argentina, the Southern Cone and in other regions of the world with enormous potential in terms of reserves and production of oil and natural gas," said BEH President Carlos Bulgheroni in the statement. "With this agreement, CNOOC takes a first large step into southern South America and Bridas consolidates its international presence and its interests in Central Asia, Africa and the Far East."

BEH said CNOOC is one of the most important players in the Asian oil business, and has expertise in offshore oil production. CNOOC's strategic plan to grow production and reserves in Latin America is "aligned with Bridas' objectives for its operations in the region.

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