China's oil giant CNOOC Limited announced on Thursday its progress in a 2.6 billion U.S. dollar deal to gain access to offshore oil and gas in the designated area in Nigeria.

The move is the latest success by the company to diversify its sources of oil imports to meet the growing demand for oil in China, where imported oil accounts for 40 percent of its domestic consumption.

The CNOOC completed its deal on Thursday to acquire a 45 percent working interest in an offshore oil mining license "OML 130" in Nigeria, the Chinese oil company said in a statement.

The OML 130 covers approximately 500 square miles and is a deep-water block with depths ranging from around 1,100 to 1,800 meters, which was described as part of the world's most prolific oil and gas basins.

Fu Chengyu, CNOOC chairman and chief executive, said, "The completion of this transaction represents a milestone in our efforts to expand into the world's most prolific oil and gas basins."

The deal was signed on Jan. 8 between CNOOC Limited and South Atlantic Petroleum Limited (SAPETRO).

The OML130 contains four significant discoveries and a range of further exploration prospects. The company will pay 2.268 billion U.S. dollars plus an adjustment of 424 million dollars for financial, operating and capital expenses in the period prior to closing.

Yang Hua, CNOOC chief financial officer and executive vice-president, said he was very confident that the acquisition, once in production, would increase substantially the company's overseas reserves and production.

The CNOOC, which is listed on Hong Kong stock market, will continue to make every effort to create value for the shareholders," said Yang.

Fu said the purchase of this interest in the OML 130 helped CNOOC gain access to an oil and gas field of huge interest and potential, located in one of the world's largest oil and gas basins.

The transaction was in line with CNOOC's long-term strategy of achieving growth through the exploration and development of offshore fields and achieving geographic diversification of the company's portfolio.

The CNOOC Limited, incorporated in Hong Kong, is a 70.64 percent held subsidiary of China National Offshore Oil Corporation, China's largest offshore oil producer.

Source: Xinhua