Chinese oil company

CNOOC

(CEO) - Get Report

agreed to buy a 45% working interest in an offshore oil-mining license in Nigeria for $2.27 billion.

The license, purchased from South Atlantic Petroleum, covers an area of about 500 square miles in the Niger Delta and contains the Akpo field, which was discovered in 2000.

Besides Akpo, the area contains three other significant discoveries and a range of further exploration prospects, CNOOC said.

CNOOC expects to close the transaction in the first half of this year. The deal requires the approval of the Nigerian National Petroleum Corp. and the Chinese government.