Thursday, July 15, 2010

China's Sinopec reports oil discovery in Nigeria

State-owned Chinese oil producer Sinopec said Monday its Addax subsidiary has struck oil offshore Nigeria after the unit was acquired last year to expand the company's African presence.

The UDELE-3 well of Block 137 in the Niger Delta showed a heavy oil flow of 3,365 barrels and 28,300 cubic meters of gas per day in a test, said a statement by the company, also known as China Petroleum & Chemical Corp.

"It showed the a huge oil exploration potential of the block in the future, and also greatly increased its value," the company said.

The well was Sinopec's first exploration in Nigeria this year.

Sinopec acquired Addax, a Geneva-based oil and gas explorer, last year for $7.2 billion to add reserves and production capacity in West Africa and the Middle East. It was the biggest foreign acquisition by a Chinese company to date.

Sinopec shares closed up 0.7 percent to 8.15 yuan on Monday in Shanghai.

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