Addax signs 10-year Gabon petroleum deal

Addax signs 10-year Gabon petroleum deal

Addax Petroleum Corp, the biggest overseas subsidiary of Sinopec Group, has won a 10-year contract to extract oil at three fields in Gabon. At peak production, the company will account for about 20,000 barrels a day, or nearly one-eighth of the African country’s oil output. “We have concluded negotiations in a mutually beneficial way, and I think this is a sign that our performance has been recognized and Chinese investors have been welcomed by the Gabonese Republic,” Zhang Yi, chief executive officer of Addax Petroleum, said in a telephone interview on Monday.
Zhang said the production-sharing agreement was reached on Jan 14 after a year of negotiations. The contract covers three oil fields: Tsiengui, Obangue and Autour.
Although he didn’t give details, Zhang said the contract has “clear financial and technical objectives” that will maximize the return for Gabon.
He said annual total output from the three fields will surpass 1 million metric tons. Addax Petroleum accounts for nearly one-third of Sinopec’s overseas output.
Source: China Daily

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