January 10, 2006	Tuesday	Zilhaj 9, 1426

BEIJING, Jan 9: China’s largest gas and oil producer CNOOC said on Monday it had agreed to buy a 45 per cent stake in an oil block off the coast of Nigeria for almost $2.3 billion.

The Hong Kong-listed unit of the China National Overseas Oil Company said it had signed a definitive agreement with South Atlantic Petroleum Ltd to acquire the stake in the block labelled OML 130 in the Niger Delta region.

OML 130 is covered by both a production sharing agreement and a production sharing contract, each of which governs a 50 per cent interest in the oil block. South Atlantic Petroleum is currently the sole contractor and 100 per cent interest holder in the production sharing contract.

Under the agreement, CNOOC will acquire a 90 per cent interest in that contract which equates to a 45 per cent working interest in the block.—AFP