Monday, 12 July 2010

Sinopec strikes oil in Nigeria

China's state-owned oil producer, Sinopec, has struck oil at an offshore block 137, UDELE-3 well, in Niger Delta. The Nigerian block, previously owned by Swiss firm Addax, is the first exploration well Sinopec drilled in Nigeria after acquiring it from Addax, almost a year ago, to increase its presence in Africa.

Upon initial inspection the UDELE-3 well showed a heavy oil flow of 3,365 barrels and 28,300 m³ of gas per day. "It showed the huge oil exploration potential of the block in the future, and also greatly increased its value," the company said in a statement.

During the exploration, drillers struck an oil layer of 45.9 metres and test yields showed an oil flow of 3,365 barrels of oil and 28,300 m³ of gas within a day. It is expected that UDELE-3 well's oil quantities will increase in the future.

Sinopec Group, parent of Sinopec Corp, bought Addax, in June 2009, for $7.24 billion. It is China's biggest overseas acquisition to date.

Source: Reuters

To find out more about Sinopec, please visit Sinopec's web site which you can find here.

For more news and expert analysis about Nigeria, please see Nigeria Focus and Nigeria Politics & Security.

No comments:

Post a Comment