Energy-hungry China clinches oil exploration pacts with Kenya

NAIROBI (AFP) – China inked oil exploration deals with Kenya as visiting President
Hu Jintao continued his African quest to quench China’s near-insatiable demand for energy to fuel its booming economy.

The China National Offshore Oil Corporation (CNOOC) said Friday that the agreement covered production-sharing contracts for six blocks off Kenya’s Indian Ocean coast covering 115,343 square kilometers (44,534 square miles).

“Signing of these six (contracts) indicates CNOOC Limited has successfully extended its overseas exploration activities to east Africa,” the company said in a statement released in Hong Kong.

“This vast area has attractive untapped exploration potential, although it is not yet a mature oil and gas producing area,” it said, adding that the exploration of the blocks would be divided into three phases.

AFP