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CNOOC Relinquishes Oil Blocks in Nigeria

08-23-2008

CNOOC Ltd. plans to relinquish its interest in the oil prospecting license (OPL) 299 in Nigeria.

The company bought a 35% working interest in the 1,357-square kilometer block for USD 60 million in 2006, and was recently reported to retreat from the block due to dim outlook.

According to some sources, CNOOC evaluated the prospecting risk, potential oil reservoir and operating costs of the block and decided to temporarily relinquish the block, and it was in talks with related Nigerian parties on the delivery. The quit was part of CNOOC's efforts to balance its global investment portfolio to reduce risk.

Besides, CNOOC in 2006 bought a 45% working interest in oil mining license (OML) 130 in Nigeria for USD 2.268 billion and development of the block now runs well.

The company was retreating from tens of blocks, including the OPL 299, with a total area of more than 100,000 square kilometers around the world that were not worth investing.