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China, Canada Join Hands to Pump Oil

China National Offshore Oil Corp (CNOOC) and Canadian Husky Corp signed a contract in Beijing yesterday to pump oil in South China's Hainan Province.

Canadian Envoy to China Robert Mackengie attended the signing ceremony, which means the two companies will take on joint pumping.

The contract, named Wenchang 09/18, involves the oilfields Wenchang 13-1 and 13-2, which were discovered by CNOOC independently. The block, 136 kilometres east of Wenchang, covers a total area of 69 square kilometres, but the amount of known reserves of oil has not been disclosed.

The contract said Husky Corp holds 40 per cent of the shares of the block and CNOOC controls the rest of it.

CNOOC and Husky embarked on negotiations to jointly drill for oil after CNOOC finished initial explorations in the two oilfields.

It is the first oil contract between the two companies and the fifth contract signed between CNOOC and overseas companies this year.

With total assets of US$5 billion, Husky is ranked among the largest oil exploration and production companies in Canada. It is active in midstream and downstream oil and gas business, which allows it to take full advantage of the process from production at the well to retail sales.

(China Daily 10/16/2000)

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