Late Delivery Expected for CNOOC's First Deep-water Rig

Monday, October 22, 2007
According to a Reuters report, the delivery of China National Offshore Oil Corporation's (CNOOC) first deep-water semi-submersible drilling platform will be delayed, at least for months, state media reported recently. Construction of the platform is expected to be completed in 2011, the official Xinhua news agency cited the company as saying. CNOOC had anticipated the delivery on Oct.1, 2010. This would mean the top offshore oil producer in China has to postpone its first independent voyage, armed with a Chinese rig, to tap deep water oil and gas resources home and abroad. CNOOC has awarded the construction, a $599m deal, to China Shipbuilding Industry Corporation's Shanghai Waigaoqiao plant, the report said, though it did not state when construction will kick off. The rig can operate in waters of up to 3,000 meters deep and drill a maximum of 12,000 meters, the report said. CNOOC also expects it will invest $20b on deep water facilities in the future, the report quoted an unnamed company official as saying, without giving a timeframe. The rig would be used in deep water areas in the South China Sea, Southeast Asia region, the Mexico Gulf and West Africa, Xinhua said. [Source: Reuters]

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