Nigeria: China National Oil Invests N290b in Sapetro
Abuja, Nigeria | September 27, 2007 by
China National Oil Corporation (CNOOC), one of China’s largest state-run oil and gas producers, has agreed to buy a stake in South Atlantic Petroleum (SAPETRO), an offshore oil and gas field owned by former defence minister, Lt.-Gen Theophilus Danjuma, for N290 billion or $2.3 billion, reported the Nigerian Leadership newspaper recently.
Information available to LEADERSHIP indicates that the company will buy a 45 per cent stake in the license covering the OML 130 field, which is owned by SAPETRO in deep waters near the Niger Delta.
CNOOC is hunting overseas oil and gas assets to supply its domestic market. China’s appetite for commodities such as oil and gas is second only to that of the United States. The OML 130 field covers almost 500 square miles, and was first discovered six years ago. It is reported to need billions of dollars of investment before it comes on stream in two years’ time.
Company chairman and chief executive, Fu Chengyu, said the purchase would give CNOOC access to “an oil and gas field of huge interest and upside potential, located in one of the world’s largest oil and gas basins”. CNOOC is one of four big oil companies created when China’s oil industry was restructured seven years ago. Its parent company is controlled by the Chinese government. CNOOC shares were suspended before the start of trading in Hong Kong on Monday, ahead of the announcement.
The company has bought access to overseas oil and gas resources in a number of countries in recent years, including Indonesia and Australia.
Last year CNOOC failed to buy US firm Unocal following what it called unprecedented political opposition to its plans from U.S. lawmakers.
The deal still needs to be approved by the Nigerian National Petroleum Corporation and the Chinese government.
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