CNOOC and BG Group Join Hands Again in South China Sea
CNOOC Limited (the "Company" or "CNOOC Ltd.") announced today that its parent company, China National Offshore Oil Corporation (CNOOC) has signed a production sharing contracts (PSC) with BG International Limited(BG Group) for block 63/16.
Block 63/16 is located in the Qiong Dong Nan basin of Western South China Sea. The block covers a total area of 2,623 square kilometers in water depth ranging from 90 to 165 meters. Block 63/16 is one of the blocks CNOOC offered for cooperation in 2007.
Under the terms of the contract, BG Group will conduct 3D seismic survey and exploration drilling. All expenditures incurred during exploration period will be borne by BG Group. CNOOC has the right to participate in up to 51% working interest in any commercial discoveries in the block.
Mr. Zhu Weilin, Executive Vice President of the Company and General Manager of Exploration Department commented, "There is huge potential for exploration in South China Sea. We are glad to join hands again with BG Group in this area and hope satisfactory achievement be made on the project."
In 2006, two PSCs for blocks 64/11 and 53/16 and a GSA for block 41/06 have already been signed between CNOOC and BG Group.
China National Offshore Oil Corporation (CNOOC Limited)
incorporated in Hong Kong in August 1999, was listed on the New York Stock Exchange (code: CEO) and The Stock Exchange of Hong Kong Limited (code: 0883) on 27 and 28 February 2001, respectively. The Company was admitted as a constituent stock of the Hang Seng Index in July 2001.
The Group is China's largest producer of offshore crude oil and natural gas and one of the largest independent oil and gas exploration and production companies in the world. The Group mainly engages in oil and natural gas exploration, development, production and sales.
The Group has four major production areas offshore China, which are Bohai Bay, Western South China Sea, Eastern South China Sea and East China Sea. It is one of the largest offshore crude oil producers in Indonesia. The Group also has certain upstream assets in regions such as Africa and Australia.
As at 31 December 2008, the Group owned net proved reserves of approximately 2.52 billion BOE and its average daily net production was 530,728 BOE. The Group had 3,584 employees and total assets of approximately RMB 206.7 billion.
For more information, visit (www.cnoocltd.com)
Search for more News