The transaction would be consummated through an all-cash tender offer to be governed by U.S. and Canadian securities laws.

Conoco Canada currently owns approximately 72 percent of the outstanding common shares of Gulf Indonesia. Conoco said its acquisition of the minority shares of Gulf Indonesia would allow Conoco to optimise its operations in Southeast Asia.

The offer represents a 23 percent premium to the closing price of Gulf Indonesia common shares on May 24 and a 21% premium over Gulf Indonesia's average closing price for the prior month.

The price is also a 74% percent premium over Gulf Indonesia's closing price on May 25, last year, when Conoco announced its acquisition of Gulf Indonesia's parent, Gulf Canada Resources Limited, which held about 72% of Gulf Indonesia.

Conoco Canada's proposal is subject to approval by the Gulf Indonesia directors and the execution of definitive documentation. The board of directors of Gulf Indonesia is comprised of 11 directors, 7 of whom are affiliated with Conoco or Conoco Canada.