CNOOC, Husky sign exploration agreement
( 2003-11-04 10:58) (China Daily HK Edition)
China National Offshore Oil Corporation (CNOOC), the country's dominant
producer of crude oil and natural gas, signed a contract with Husky Oil China
Limited yesterday to explore oil and gas in the East China Sea. The proposed
exploration field, Block 04/35, is located about 350 kilometres east of
Zhang Guohua, senior vice-president of CNOOC, said since the East China Sea
is under-explored currently, there is a great opportunity for the company and
its partner to tap oil and gas in the area.
Husky Oil China, controlled by Hong Kong tycoon Li Ka-shing, is committed to
drill one wildcat to a depth of 2,500 meters during the first three years of the
contract, and will fund 100 per cent of the exploration expenditure. Meanwhile,
CNOOC Limited is entitled to participate in up to 51 per cent interest in any
commercial discoveries within the contract area.
At the end of last year, CNOOC's net proven reserves reached 2 billion
barrels-of-oil equivalent (BOE) and its net production averaged 353,102 BOE per
day for the first nine months of this year.
CNOOC has been the most active acquirer among the three Chinese oil majors,
spending nearly US$2 billion buying oil and gas assets in Indonesia and
Australia since last year.