CNOOC to Acquire Sinopec Star Offshore Assets

CNOOC Ltd reported that it would acquire a 50 percent interest in all of Sinopec National Star's offshore assets through a joint venture in which foreign investors may own up to a 40 percent stake.

The offshore assets have gross reserves of 294 million barrels of oil equivalent (BOE), cover four main gas fields and 30,800 square kilometers of exploration blocks in the Xihu Trough area -- according to a company statement.

Xihu, a natural gas project in the East China Sea, is currently owned by CNOOC's mainland-based parent company China National Offshore Oil Corp and 50 percent by National Star, which has been acquired by Hong Kong-listed second largest Chinese oil company Sinopec . The Xihu Basin has estimated gas reserves of two trillion cubic feet.