CNOOC In The Market for an Oil Field

CNOOC Ltd is planning a US $500-600 million oil field acquisition in early 2002. A most likely acquisition target would be an oil field outside of the mainland in Asia. It's unlikely to be in either Russia or Africa, the source stated. There is a strong possibility that CNOOC will close an acquisition deal valued at US$500-600 million early next year because its talks with potential vendors have lasted for quite some time.

Some oil producers, which borrowed heavily to buy some oil fields when oil prices were high, are under pressure to sell some of their assets to help ease pressure on cash flows. An acquisition will boost CNOOC's output growth, already targeted at 15 percent annually over five years.