China Trade Information

Mainland largest offshore oil producer China National Offshore Oil Corp (CNOOC) has given up its working interest in oil exploration license (OML) 141 in Nigeria owning to an unclear prospect, the South China Morning Post reported citing an unnamed source.

CNOOC this month agreed to give most of its 35% share back to Nigerian firm Emerald Energy Resources, the project’s operator, according to the source.

Under the new agreement, CNOOC would only hold a nominal 5% stake as collateral for an US$80 million loan to the project.

CNOOC chief financial officer Yang Hua declined to make comments on whether CNOOC had quit the block.

CNOOC acquired the stake for US$60 million in Jan. 2006. It also bought a 45% stake of (oil exploration license) OML130 in the same year from South Atlantic Petroleum Ltd for US$2.3 billion.

In April, CNOOC had revealed that it was involved in a tax dispute on its acquisition of OML 130 with the Nigerian government, as the country’s local tax bureau raised objections on the Chinese company’s tax declaration for the deal.

Compared with OPL 299, OML130 possesses a larger production capacity. It is capable of producing 175,000 barrels-of-oil-equivalent (BOE) per day, CNOOC said earlier.

Tags: CNOOC, Petroleum

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