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CNOOC Ltd settles in at Akpo



By Upstream staff 

Chinese oil and gas giant China National Offshore Oil Corporation Ltd (CNOOC Ltd) has completed its acquisition of a 45% stake in an oil block off Nigeria.

The company said that it would pay $2.3 billion plus an adjustment of $424 million for financial, operating and capital expenses to buy the stake in OML 130 in the Niger Delta from Nigeria's South Atlantic Petroleum.

The block contains the giant Akpo oil and gas field and three other significant discoveries Egina, Egina South and Preowei. It also includes a range of prospects worth further exploration.

OML 130 operator Total estimates Akpo's recoverable liquid volumes at 600 million barrels, with potential for additional recoverable oil reserves of 500 million barrels for the whole OML130 area. Akpo is expected to come on stream by the end of 2008 and to reach peak production shortly after that.

Production is expected to increase once when Egina, Egina South and Preowei come online.

CNOOC Ltd chief executive Fu Chengyu said: “The completion of this transaction represents a milestone in our efforts to expand into the world’s most prolific oil and gas basins.”


Thursday, 20 April, 2006, 01:14 GMT  | last updated: Thursday, 20 April, 2006, 01:19 GMT

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