China buys stake in RI

China buys stake in RI

BEIJING (Reuter): The China National Offshore Oil Corporation
(CNOOC) said on Saturday it had bought a 32.58 percent stake in
oilfields off Indonesia, becoming their biggest single
shareholder.

CNOOC did not say how much it paid. A company statement said
it was optimistic about returns and the oilfields in the Malacca
Strait had "encouraging potential".

The purchase was CNOOC's first oil development overseas. It
acquired the shares from the U.S. oil giant Atlantic Richfield
Co, which had been the block's major shareholder in the past 10
years.

The contracted block covers an area of some 10,000 sq km
(3,860 sq miles). It comprises 13 oilfields in operation, three
that have indicated oil and gas reserves and 10 others seen as
promising.

Oil produced will be sold overseas, said CNOOC.

The transfer of ownership took effect retroactively, on Jan. 1
this year, the statement said.

The deal, approved by both the Chinese government and
Indonesia's national oil firm Pertamina, expires in the year 2000
but can be extended, it said.

The block's other partners are Oryx Energy Co and Kondur of
the United States, Lasmo of Britain and Nippon of Japan, the
China Daily newspaper said.