CNOOC Ltd commits to offshore investment in Nigeria

19 July 2018, Week 28, Issue 702

CNOOC Ltd is willing to invest an additional US$3 billion in its existing stakes in offshore oil and gas operations in Nigeria, the Nigerian National Petroleum Corp. (NNPC) said on July 15.

CNOOC Ltd’s CEO, Yuan Guangyu, said the company’s investment in Nigeria was its “most strategic and important overseas business undertaking”, according to an NNPC statement.

CNOOC Ltd, a subsidiary of Beijing-based China National Offshore Oil Corp. (CNOOC), has invested more than US$14 billion in its Nigerian operations to date, NNPC noted during Yuan’s visit to its headquarters in Abuja. Yuan also said the African country was the Chinese company’s largest investment destination and asked NNPC to seek common grounds for enhanced productivity.

NNPC meanwhile is open to new investments and will foster “meaningful and mutually beneficial relations” with companies such as CNOOC Ltd, it said in the statement.

Since last year, Nigeria has been engaged in discussions with oil majors related to new financing agreements for joint ventures. 

In 2017, the firm signed US$780 million worth of financing agreements with energy supermajors Chevron and Royal Dutch Shell, in an effort to increase oil production.

CNOOC Ltd has a 45% stake in Oil Mining Licence (OML) 130 in Nigeria, which it acquired in 2006, alongside partners that include France’s Total. The block is located in in the deepwater Niger Delta, next to the Nigeria Sao-Tome Joint Development Zone (JDZ).

It contains the producing Akpo gas field, the undeveloped Preowei field as well as the Egina field, which was sanctioned in 2013. The floating production, storage and offloading (FPSO) unit for Egina arrived in Nigeria in early 2018. It is due to start producing by the end of the year, ramping up to 200,000 bpd, and will be the largest such unit in operation in the country. 

CNOOC Ltd posted a 4.7% increase in overseas production, to 42.6 million boe (473,000 boepd) in the first quarter of this year, it said in April. Growth was mainly driven by higher production at the Missan project in Iraq and an increase of interests held by Bridas in Argentina’s Pan American Energy, a unit of BP.

Edited by

Andrew Kemp

Editor

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