AFX News Limited
12.14.2005, 12:50 AM

HONG KONG (AFX) - CNPC (Hong Kong) Ltd said its oil and gas exploration unit in Peru has been given the rights for exploration and production of crude oil and natural gas at two zones in Peru.

It said in a statement that SAPET Development Peru Inc, which it jointly owns with parent China National Petroleum Corp, has entered into an agreement with Peru's state-owned Perupetro SA to explore and develop oil and natural gas in Peru.

It said its unit will have the right to explore and develop oil reserves there for 30 years and natural gas and condensate reserves for 40 years.

SAPET Peru is required to carry out geological studies and initial data gathering which will cost the unit 31.6 mln usd.

It said it is unable to provide at this stage details on the estimated reserves of the sites.

At morning close, CNPC was down 0.01 hkd or 0.56 pct at 1.76.

(1 usd = 7.8 hkd)