On February 26, the 12th Global Investment & M&A Summit opened in grand fashion at the Shanghai Xijiao State Guest Hotel. The cross-border acquisition of Swedish-listed Tethys Oil AB ("Tethys") by Hainan Mining’s wholly-owned subsidiary, Roc Oil, was honored with the "2024-2025 Golden Whistle Award for Top 10 Cross-Border M&A Deals."

Zhang Lei (third from right), Assistant President and Managing Director of Investment, accepts the award on stage.

Centered on valuation advantages and strategic synergies, this transaction marks a major milestone in Hainan Mining’s global resource expansion, offering an innovative model for high-quality overseas ventures by Chinese enterprises.

As one of China’s most authoritative and influential awards in cross-border M&A, the Golden Whistle Award was initiated by MorningWhistle Group, a leading intelligent transaction platform for global primary equity markets. It recognizes the most representative deals among active Chinese buyers annually.

Seizing Cyclical Opportunities: Locking in Premium Assets at Low Cost

Tethys Oil is a key holder of onshore oilfield resources in Oman, with core assets including the producing Blocks 3 & 4, the developing Block 56, and the exploration-ready Blocks 49 and 58—covering approximately 60,000 square kilometers, or 18% of Oman’s total land area.

In 2023, amid global energy market volatility, Tethys’ stock price plummeted due to non-operational impairments. Seizing the opportunity, Hainan Mining launched a full takeover bid in September 2024, ultimately acquiring 90% of shares for $156 million (implying a 100% equity value of $173 million)—a 33% discount to net asset value.

S&P Global and energy analytics firm Welligence noted that the deal, priced below intrinsic value, provides ample room for future resource development and operational integration. This underscores Hainan Mining’s exceptional investment acumen, resource access capabilities, and strategic execution in entering the Middle East.

To date, Roc Oil holds 96.19% of Tethys’ shares. On January 24, 2025, Tethys completed its delisting and board restructuring, officially becoming a Roc Oil subsidiary and consolidating into Hainan Mining’s financial statements.

Expanding Energy Footprint, Strengthening Sustainable Growth

The acquisition adds 21.7 million barrels of 2P crude oil reserves to Roc Oil, boosting its total reserves by 123%. In H1 2024, Tethys’ producing fields yielded 7,860 barrels per day (net to Roc), set to increase Roc’s output by 140% and elevate Hainan Mining into the top tier of independent A-listed oil and gas firms (excluding China’s "Big Three" state oil giants). Moreover, newly acquired exploration blocks cover nearly 90% of undeveloped acreage, offering substantial long-term reserve potential.

As a vital partner in China’s Belt and Road Initiative and a major crude supplier, Oman serves as Hainan Mining’s strategic anchor in the Middle East. The deal enhances regional synergy across the "South China Sea–Southeast Asia–Middle East" corridor while optimizing the geographic and operational mix of Hainan Mining’s oil and gas portfolio.

This transaction not only advances Hainan Mining’s "Minerals + Energy" strategy but also exemplifies Chinese resource firms’ deepening integration into global value chains. Leveraging its "high-quality assets at attractive prices" approach and operational precision, Hainan Mining is steadily evolving into a global resource platform—contributing to national energy security and industrial upgrading.