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EarthTimes.Org: Energy Watch: CNOOC eyes overseas acquisitions

04 April 2007  
Author : Energy Analysis Editor 

China’s state-controlled offshore oil and gas company CNOOC said it plans to continue seeking overseas acquisitions and tie-ups. In addition to expanding projects where it already has established a presence such as Southeast Asia, Nigeria, Morocco and Canada, CNOOC also wants to engage in exploring new projects, Zhong said.

Since it rescinded its $18.5 billion bid for Los Angeles-based Unocal due to U.S. political opposition, CNOOC has been pursuing oil deals in Africa, including Nigeria and Kenya.When asked if CNOOC was concerned about oil nationalization moves under way in South America’s largest producer, Venezuela, Zhong said the company was not overly concerned.Sakhalin receives billions for oil, gas projectsRussia’s projects in the Far East on Sakhalin Island are expected to attract $2.3 billion in investments from foreign and local investors in 2007.
The offshore oil and gas projects Sakhalin-1 and Sakhalin-2 are some of the most expensive projects in the world.One more oil platform called PA-B will be placed in the Sea of Okhotsk in the summer under the Sakhalin-2 project, operated by Sakhalin Energy, the press service of the Sakhalin regional committee for foreign economic relations said Tuesday. The platform will make complete a group of four sea platforms and one coast platform that will begin the oil and gas output in 2008.

Exxon subsidiary Exxon Neftegaz Ltd., which is an operator of Sakhalin-1 project, owns the platforms Orlan and Yastreb.The platforms Molipak, LUN-A and PA-B are to begin full-capacity operation in 2008 when a liquefied gas plant will be able to receive hydrocarbons from the platforms. The plant is being built on the coast of the Aniva Bay in southern Sakhalin.As all the platforms come to a rated capacity, the oil output in Sakhalin will be more than 20 million tons annually and of liquefied natural gas 10 million tons.Foreign investment in the Sakhalin region’s economy in 2006 was $5.4 billion.Eni, Sonangol to buy stake in Angola LNG Ltd.

Italy’s Eni and Angolan state-owned oil company Sonangol have secured an agreement through Eni’s wholly owned subsidiary, Eni Angola Exploration B.V., to acquire a 13.6 percent stake in the consortium Angola LNG Ltd. The consortium is constructing a gas liquefaction terminal with a capacity of 5 million tons annually in Soyo, north of Luanda, the Angolan capital.After the acquisition, Sonangol will hold a 22.8 percent stake in the company; Chevron will own a 36.4 percent stake; and Eni, Total and BP will each hold a 13.6 percent interest.

The project will require a total investment of $4 billion to have a terminal that will process in 28 years some 220 billion cubic meters of gas and will produce 128 million tons of liquefied natural gas, 104 million barrels of condensates and 257 million barrels of liquefied petroleum gas. The liquefied natural gas will be destined to the U.S. market and will be regasified at the Pascagoula plant in the Mexican Gulf. Under the deal, Eni will acquire a regasification capacity of 5 billion cubic meters annually.

The protocol agreement is part of the strategic cooperation deal signed by Eni and Sonangol in December 2006, and consolidates the presence of Eni in Angola, where the company produces 153,000 barrels of oil equivalent per day.

Copyright 2007 by UPI 

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