China National Offshore Oil Corporation (CNOOC) has confirmed intention to grow its investments in oil and gas exploration and production in Nigeria from current $14 billion to $17 billion in the short to medium term.
Details of the investment plan, which was disclosed during a visit by the company’s delegates to the Nigerian National Petroleum Corporation (NNPC) in Abuja were not disclosed by The Oracle Today reports that the company’s active oilfields in the country are operated by Total Exploration and Production Nigeria (TEPN) Limited.
The Chinese company partners Total, Statoil and Petroleum Brasiliero (Petrobras) in activities in Oil Mining Lease acreage (OML) 130 where Total has successfully developed two deepwater fields with combined capacity for 380,000 barrels per day of crude oil and condensate.
Fields in the oil block include the active Akpo field which is currently producing some 180,000 barrels per day and the Egina field whose development is advanced and due for production of about 200,000 barrels per day by end of the year.
The fields in the oil block notionally operated by South Atlantic Petroleum (Sapetro) owned by Gen. Theophilus Danjuma (rtd) also has additional undeveloped oilfields including Porewei which is in the development plan of Total. It might be likely that the additional $3.0 billion mapped out by CNOOC could be equity funding for future oilfield developments in the block.
Nigerian National Petroleum Corporation (NNPC) is the concessionaire of the nation’s oil and gas assets operated by commercial investors according to the global partnership models in the industry.
The CNOOC is one of the Chinese multinational enterprises that that hold separate stakes in the Nigerian petroleum industry.
The company is originally focused on offshore upstream exploration and production, whereas the China National Petroleum Corporation (CNPC) is focused on onshore upstream exploration and production.
The China National Oil and Petrochemical Company (SINOPEC) is the midstream affiliate focused on processing and marketing. However, SINOPEC bought into Addax Petroleum Development Company Limited and became one of the nation’s joint venture operators with NNPC in the onshore terrain.
Management of CNOOC, which was at the NNPC’s corporate head office in Abuja weekend expressed readiness to invest additional $3.0 billion in its existing stakes in offshore oil and gas operations in the Nigerian jurisdiction.
Chief Executive Officer of the Beijing based corporation, Mr. Yuan Guangyu, described the company’s investment in Nigeria as the most strategic and important overseas business undertaking.
He called on the management of the NNPC to seek common grounds of beneficial interest with CNOOC for enhanced productivity, saying CNOOC had previously invested over $14 billion in its Nigerian operations.
Yuan Guangyu said Nigeria remained the largest investment destination for CNOOC.
Responding, the Group Managing Director of the NNPC, Dr. Maikanti Baru, who was represented by Dr. Victor Babatunde Adeniran, Chief Operating Officer (COO), Ventures Autonomous Business Unit of the corporation, thanked CNOOC for its interest in the Nigerian Oil and Gas Industry.
He said the corporation was open to new investments and would foster meaningful and mutually beneficial relations with credible entities like CNOOC.