CNOOC: A Deepwater Gas Finding in Qiongdongnan Basin
China's CNOOC Limited (NYSE: CEO, SEHK: 0883) announced a deepwater gas discovery on Block 64/11 offshore China after the Lingshui 22-1-1 exploration well drilled by its partner, BG Group (BG) , encountered gas-bearing sands.The exploration well is located in Qiongdongnan Basin in the South China Sea, approximately 130 kilometres offshore and in a water depth of 1,338 metres. BG will conduct further analysis of the well results to evaluate the hydrocarbon potential in the Block. Mr. Zhu Weilin, Executive Vice President of the Company commented, “This is the first deepwater well in Qiongdongnan Basin. We are excited about the well results. It has further strengthened our confidence in deepwater exploration in this area.”
The company signed the production sharing contract (PSC) with BG for deepwater block 64/11 on 7th June 2006.