China’s CNOOC to Develop Brazil Field as Part of Consortium

CNOOC Limited (the “Company”, NYSE: CEO, SEHK: 00883, TSX: CNU) announced on October 22 that the Company, as part of a consortium comprised of Petrobras, Shell, Total and CNPC, has been awarded a 35-year production sharing contract to develop the Libra pre-salt oil discovery in the Santos Basin, offshore Brazil.
 
The Company holds 10% percent in the winning consortium, with the operator Petrobras(40%), Shell (20%), Total(20%) and CNPC(10% ).
As part of the winning bid, CNOOC Limited will pay 1.5 billion Brazilian Reais (approximately US$0.7 billion) as its 10% share of the signing bonus, and the winning consortium will conduct a minimum work program no later than end 2017.
Mr. Li Fanrong, CEO of the Company commented,” Libra field in Brazil is one of the largest deepwater oil accumulations in the world. The participation of CNOOC Limited in Libra project not only signifies the milestone of a strategic entry into ultra-deepwater field for the Company, it also aligns with our philosophy of seeking partnerships to expand our global footprints.”
 
Source: CNOOC Press Office, 2013