Shell to buy $300 million stake in CNOOC
Shell Overseas Investment BV, a member of the Royal Dutch/Shell Group of Companies, signed a strategic alliance agreement with China National Offshore Oil Corp.
to jointly develop a range of opportunities in oil and gas exploration and production and gas marketing.
Shell will invest up to $300 million to purchase 20 percent of CNOOC's initial public offering.
The strategic alliance with CNOOC covers exploration and joint development and production of some oil and gas fields in Bohai Bay and the exploration, development and production of gas reserves in part of the Xihu Trough in the East China Sea.
Under the alliance, Shell and CNOOC agreed to jointly conduct feasibility studies for a gas pipeline linking major cities on China's East Coast.
Shell officials said it would sign petroleum contracts with CNOOC for the joint exploration and development of a number of oil and gas fields in three Bohai blocks, and explore further in the Bonan block.
The fields are located in about 333 feet of water with in-place volumes of 1 trillion cubic feet of gas and 600 to 700 million barrels of oil.
CNOOC and Shell also will participate in petroleum contracts to explore, develop and produce gas reserves in the Xihu Trough as soon as foreign participation is allowed.
© 2000 Mena Report (www.menareport.com)