China National Offshore Oil Corporation (CNOOC) Africa Limited, a subsidiary of the China National Offshore Oil Company (CNOOC) Ltd, signed a production sharing contract (PSC) for an oil block in Equatorial Guinea, said sources with CNOOC Ltd. on Saturday.
The contract for block S was signed with the Ministry of Mines, Industry and Energy, and the National Oil Company of Equatorial Guinea (GEPetrol) on Friday.
Block S covers a total area of approximately 2,287 sq km in the south offshore Equatorial Guinea. The water depth of the block ranges from 30 to 1500 meters.
The exploration period of the contract is set at five years and CNOOC Ltd. acts as the technical operator.
Under the terms of the contract, CNOOC Ltd. is committed to conducting seismic data interpretation and drilling exploration wells.
Zhu Mingcai, vice president of CNOOC Ltd. cited the signing of the PSC for block S in the Republic of Equatorial Guinea as another sign of progress in CNOOC's overseas operation expansion.
Breakthroughs for the benefits of both parties are expected in the block, which has favorable geological conditions, said Zhu.
CNOOC Limited, incorporated in Hong Kong, is a 70.64 percent held subsidiary of the CNOOC, China's largest offshore oil producer.
(Xinhua News Agency February 19, 2006)