12.07.10 Nigeria Focus Sinopec strikes oil in Nigeria

Shulin Su, chairman of Sinopec AFP/Getty Images

China's state-owned oil producer, Sinopec, has struck oil at an offshore block 137, UDELE-3 well, in Niger Delta. The Nigerian block, previously owned by Swiss firm Addax, is the first exploration well Sinopec drilled in Nigeria after acquiring it from Addax, almost a year ago, to increase its presence in Africa.

Upon initial inspection the UDELE-3 well showed a heavy oil flow of 3,365 barrels and 28,300 m³ of gas per day. "It showed the huge oil exploration potential of the block in the future, and also greatly increased its value," the company said in a statement.

During the exploration, drillers struck an oil layer of 45.9 metres and test yields showed an oil flow of 3,365 barrels of oil and 28,300 m³ of gas within a day. It is expected that UDELE-3 well's oil quantities will increase in the future.

Sinopec Group, parent of Sinopec Corp, bought Addax, in June 2009, for $7.24 billion. It is China's biggest overseas acquisition to date.

Source: Reuters

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