By OGJ editors
HOUSTON, Jan. 9 -- CNOOC Ltd. agreed to acquire a 45% interest in oil mining license (OML) 130 off Nigeria for $2.268 billion from South Atlantic Petroleum Ltd. (Sapetro) of Lagos.
The transaction, expected to close during the first half, is subject to approval from Nigerian National Petroleum Corp. and also from the Chinese government, which is CNOOC's majority owner.
A production-sharing agreement and a production-sharing contract (PSC) each governs a 50% interest in OML 130. Sapetro holds 100% interest in the PSC, of which CNOOC plans to acquire 90% interest, providing it with a 45% interest in OML 130.
CNOOC Chairman and Chief Executive Fu Chengyu said the transaction fits CNOOC's long-term strategies of growth through exploration and development and of achieving assets having geographic diversification.
India's Oil & Natural Gas Corp. submitted a $2 billion bid for the license last month. But the Indian government blocked that transaction, contending it was commercially unviable.
This is the first investment offer that CNOOC has made since its unsuccessful bid for Unocal Corp. last year (OGJ, Aug. 8, 2005, p. 29).
Akpo field
The license contains Akpo gas and condensate field, discovered by Total SA in 2000. OML 130 covers 500 sq miles in 1,100-1,800 m of water, 200 km off Port Harcourt, Nigeria (OGJ, May 9, 2005, Newsletter). OML 130 also contains the Egina, Egina South, and Preowei discoveries.
Akpo's development plan includes 22 producing wells, 20 water injection wells, and 2 gas injection wells, all of which will be tied back to a 2-million-bbl floating production, storage, and offloading (FPSO) vessel.
Scheduled on stream in late 2008, Akpo is expected to reach a quick production peak of 225,000 boe/d, 80% condensate. Plans call for the condensate to be exported via a buoy 2 km from the FPSO. The gas will be piped 150 km to the Amenam/Kpono platforms and then transported to the Bonny liquefaction plant.
