CNOOC closes offshore Nigeria deal

CNOOC Ltd. has closed on its acquisition of a 45% interest in oil mining license (OML) 130 off Nigeria from South Atlantic Petroleum Ltd. (Sapetro) of Lagos (OGJ Online, Jan. 9, 2006).

April 20, 2006

By OGJ editors
HOUSTON, Apr. 20 -- CNOOC Ltd. has closed on its acquisition of a 45% interest in oil mining license (OML) 130 off Nigeria from South Atlantic Petroleum Ltd. (Sapetro) of Lagos (OGJ Online, Jan. 9, 2006).

CNOOC said it paid $424 million in addition to the $2.268 billion that it initially agreed to pay. The adjustment involved financial, operating, and capital expenses before closing.

OML130 contains four discoveries and a range of prospects. Nigerian National Petroleum Corp. and the Chinese government, which is CNOOC's majority owner, both approved the transaction.

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.