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This is the first of a two-case series (305-605-1 and 305-606-1). Since China National Offshore Oil Corporation’s (CNOOC) overseas IPO (initial public offering), Wei Liucheng, the Chief Executive Officer (CEO), was ambitious to turn CNOOC into a global player. The company came upon a golden opportunity, Repsol-YPF SA, because of its heavy debt burden and business restructuring, was seeking to sell its rights and interests in several oil / gas fields in Indonesia. If CNOOC could take over these high-quality assets, it would be of great help to its overseas expansion. Just when the negotiation was one step away from closure, Repsol-YPF suddenly began to shilly-shally on the deal. The negotiation was entangled with trivial issues and the date of signing the agreement was put off time and again. More and more signs indicated that Repsol-YPF wanted to quit from the deal, and by that time, the international political and economic environment was starting to favour Repsol-YPF. A further delay would bring two possibilities: (1) either CNOOC would have to raise the price of its offer; or (2) Repsol-YPF would withdraw from the deal. This case is divided into two parts. Part (A) mainly discusses the background of this deal, target assets and CNOOC’s strategic concerns. Part (B) mainly discusses the negotiation process and the post-acquisition integration.