Brazil’s Petrobras joined by CNOOC of China in Nigerian oil project

10 January 2006

Sao Paulo, Brazil, 10 Jan – China’s biggest offshore oil operator, the state-owned CNOOC, is paying US$ 2.3 billion to acquire a large stake in a Nigerian oil and gas field where Petrobras of Brazil is already a shareholder.

CNOOC (China National Offshore Oil Corp) is purchasing a 45 percent stake in the Akpo oil field in the Niger Delta from South Atlantic Petroleum of Nigeria in the biggest ever deal for the Chinese company and one of the largest acquisitions by a Chinese company.

CNOOC said the transaction fitted in with its policy of expansion in various regions of the world.

Total of France is the field’s operator and investment in the venture is expected to total US$ 5 billion by 2008.

Brazilian state-owned energy firm Petrobras has a 16 percent share in the Nigerian field and signed a contract with Chinese state oil company Sinochem in July 2005 to supply 12 million barrels of oil.

Petrobras is supplying the heavy crude from its Campos Basin oil field, off the northern coast of Rio de Janeiro state, in a contact worth 500 million euros – the first deal between the company and a Chinese state energy firm.

The Brazilian company plans to export oil and derivatives worth 830 million euros to China in the coming five years. (macauhub)