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. on
Saturday.
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 News Agency February 19, 2006)