CNOOC, SINOPEC acquire $1.3-billion interest in offshore Angola block

CNOOC and SINOPEC have agreed to purchase an undivided 20% participating interest in the Production Sharing Contract and Joint Operating Agreement in block 32 offshore Angola from Marathon International Petroleum Angola Block 32.

Offshore staff

HOUSTON -- CNOOC and SINOPEC have agreed to purchase an undivided 20% participating interest in the Production Sharing Contract and Joint Operating Agreement in block 32 offshore Angola from Marathon International Petroleum Angola Block 32. Marathon will maintain a 10% interest in the block.

The $1.3-billion deal is expected to close by the end of the year, subject to government and regulatory approvals. For transfer of working interests in Angola, the concessionaire and other block 32 partners have rights of first refusal.

Twelve previously announced discoveries on block 32 include: Gindungo, Canela, Cola, Gengibre, Mostarda, Salsa, Caril, Manjericao, Louro, Cominhos, Colorau, and Alho. Conceptual development studies are under way in order to establish the feasibility of a first development area in the central southeastern part of the block.

Sonangol is concessionaire for the block. Total Exploration and Production Angola serves as operator with a 30% interest; Sonangol P&P holds a 20% interest; Esso Exploration and Production Angola holds a 15% interest; and Petrogal holds a 5% interest.

07/17/2009

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