CNOOC signed production sharing contract
19/2/2006 10:18
China National Offshore Oil Corporation (CNOOC) Africa Limited, a
subsidiary of the China National Offshore Oil Company (CNOOC) Ltd, signed a
production sharing contract (PSC) for an oil block in Equatorial Guinea, said
sources with CNOOC Ltd yesterday.
The contract for block S was signed with
the Ministry of Mines, Industry and Energy, and the National Oil Company of
Equatorial Guinea (GEPetrol) on Friday.
Block S covers a total area of
approximately 2,287 sq km in the south offshore Equatorial Guinea. The water
depth of the block ranges from 30 to 1500 meters.
The exploration period of
the contract is set at five years and CNOOC Ltd acts as the technical
operator.
Under the terms of the contract, CNOOC Ltd is committed to
conducting seismic data interpretation and drilling exploration wells.
Zhu
Mingcai, Vice President of CNOOC Ltd cited the signing of the PSC for block S in
the Republic of Equatorial Guinea as another sign of progress in CNOOC's
overseas operation expansion.
Breakthroughs for the benefits of both parties
are expected in the block, which has favorable geological conditions, said
Zhu.
CNOOC Limited, incorporated in Hong Kong, is a 70.64 percent held
subsidiary of the CNOOC, China's largest offshore oil
producer.
Xinhua
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