CNOOC Announces Successful Bid for Libra Field In Brazil for $700M

CNOOC (CEO) announced that the company, as part of a consortium comprised of Petrobras (PBR), Shell (RDSA), Total (TOT), 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, which owns 40%, Shell, which owns 20%, Total, which owns 20%, and CNPC, which owns 10%. As part of the winning bid, CNOOC will pay approximately $700M as its 10% share of the signing bonus, and the winning consortium will conduct a minimum work program no later than end 2017. Libra field is located in Santos Basin, approximately 170 kilometers off the coast of Rio de Janeiro. The block covers approximately 1,550 square kilometers with water depths of around 2,000 meters. The Brazilian regulator, Agência Nacional do Petróleo estimates that the recoverable resources of Libra field is between 8B-12B barrels of oil and a total gross peak oil production could reach 1.4M barrels per day.

(theflyonthewall.com, edited by Topco)