HONG KONG -- CNOOC is set to acquire Devon Energy’s 24.5% interest in block 15/34 in the Pearl River Mouth basin of the South China Sea.
Block 15/34 is around 200 km (124 mi) south of Hong Kong, in a water depth of 100 m (328 ft). Panyu 4-2/5-1, onstream since 2003, is the block’s major producing oil field. Current gross oil production from the block is 49,000 b/d of oil.
Completion of the transaction, valued at $515 million, is subject to government and regulatory approvals from the People's Republic of China.
CNOOC as operator will increase its stake in the block to 75.5% following the transfer. The other partner ConocoPhillips holds the remaining 24.5% stake.