China inks oil contract with Equatorial Guinea
Updated: 2006-02-19 09:32
A subsidiary of leading Chinese oil and gas producer China National Offshore
Oil Company Ltd. (CNOOC) has signed a production-sharing contract for an
offshore block in Equatorial Guinea.
China National Offshore Oil Corporation
(CNOOC) executive director Yang Hua. A subsidiary of CNOOC has signed a
production-sharing contract for an offshore block in Equatorial Guinea.
The five-year contract was signed on
Friday by Equatorial Guinea's mines ministry, national oil firm GEPetrol and
CNOOC Africa Ltd., Xinhua news agency said Saturday, citing CNOOC sources.
It covers a block of about 2,287 square kilometres (915 square miles) off the
south coast of Equatorial Guinea with the waters ranging from 30 to 1,500 metres
(99 to 4,950 feet) in depth.
The agreement follows a strategic partnership between the two countries
announced by President Teodoro Obiang Nguema during a visit to Beijing in
Equatorial Guinea is the third biggest producer of crude oil in sub-Sahara
Africa. US companies have hitherto developed its oil resources.
CNOOC vice president Zhu Mingcai cited the deal as another sign of progress
in the energy firm's expansion of overseas operations, Xinhua said.
China, the world's second biggest oil consumer, is scouring the globe for
more oil to fuel its unprecedented economic boom.
In January CNOOC announced it had agreed to buy a 45 percent stake in an oil
block off the coast of Nigeria for almost 2.3 billion dollars.