CNOOC Signs Agreement to Invest $3.36 Billion for Nanxi Peninsula Development in Fujian

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Researched by Industrial Info Resources (Sugar Land, Texas). On June 23, 2009, China National Offshore Oil Corporation (CNOOC) (Beijing) and the Government of Fujian Province jointly signed a cooperation agreement regarding the development of Nanxi Peninsula in Fuzhou, the capital city of East China's Fujian Province. According to the Agreement, the parties will invest $3.36 billion to accelerate the development of Nanxi Peninsula in Sandu'ao of Ningde City to promote the construction of the West Bank Economic Zone over the Taiwan Straits in Fujian.

Both parties will setup an industry zone named "Haixi Ningde Industry Zone" and the project company, CNOOC Haixi Ningde Industry Zone Development Company Limited (CNOOC HNIZDC) (Ningde, Fujian), where CNOOC will possess 85% of shares in it.

The proposed industry zone is comprised of seven towns - Xiatang, Haoyu, Changyao Island, Xiayan, Guancuocheng, Nanxi and Shajiang - in the south of Nanxi Peninsula covering a planned area of about 100 square kilometers, including land created from sea. Petroleum reserve, natural gas utilization, oil and gas deep processing, metallurgy, machinery as well as associated logistic park, life and commercial service facilities will be built in the planned zone.

In near term, CNOOC HNIZDC will be focused on the construction of a 700,000 barrel crude oil reserve, a 2.6 million metric ton LNG terminal and pipeline works, as well as the associated support projects. In the middle and future-term, oil and gas deep processing, metallurgy and machinery industries such as offshore oil artesian well and port facilities will be its dominant industry. According to the planning, the developed area of the industry zone will reach 20 square kilometers in 2015, and over 40 square kilometers in 2020.

Sandu'ao is a well-known natural harbor with sound conditions for port construction. It's also located in the middle of the coastal line in eastern China between Fuzhou Port and Beilun Port, and is 390 sea miles from Shanghai and 561 sea miles from Huangpu Port in Guangzhou.

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