BEIJING�China National Offshore Oil Corp. and Britain�s Primeline Petroleum Corp. have reached an agreement to transfer Primeline's stakes in two offshore oil and gas blocks in the East China Sea to CNOOC. Terms of the agreement were not disclosed.
The deal increases CNOOC's shares in Lishui 36-1 and Lishui 32-32 blocks to 85% from the original 51%, while Primeline's stakes in the blocks are down to 15% from 49%.
CNOOC licensed the blocks to Primeline in 1994 through production-sharing agreements. In 1998, Primeline made a discovery on Lishui 36-1 that flowed 9.86 MMcfd of natural gas and 117 b/d of condensate on test.
As part of its corporate strategy this year to accelerate E&P activity in the East China Sea, CNOOC decided to increasing drilling on the Lishui blocks.
The agreement commits CNOOC to process the seismic data collected by Primeline in Lishui 36-1 and drill two exploration wells at Lishui 32-32 this year.
CNOOC and Primeline will set up joint management committee to supervise the E&P of the two blocks.
