By the OGJ Online Staff
HOUSTON, Aug. 27 -- CNOOC Ltd. agreed to acquire a 50% holding in the Xihu Trough area of the East China Sea from parent company China National Offshore Oil Corp. for $45 million.
The deal awaits approval from the Chinese government. China Petroleum & Petrochemical Corp. (Sinopec) holds the remaining 50%.
CNOOC Ltd. subsidiary CNOOC China Ltd. will acquire the asset; afterwards, CNOOC Ltd. will operate it.
CNOOC Ltd. said in June that it expected to acquire this holding (OGJ Online, June 22, 2001).
"This is a significant acquisition by CNOOC Ltd. We are acquiring not only the existing oil and gas reserves but also upside exploration potential in the area. We are looking forward to a quick kick-off of the development work," said Mark Qiu, chief financial officer and senior vice-president.
The Xihu Trough is in the East China Sea, 400 km east of Shanghai.
CNOOC Ltd.estimates the area contains 1.5 tcf of gas and 42.6 million bbl of liquid.