China Oilfield Services (HKG:2883) has agreed to sell to its controlling shareholder, China National Offshore Oil Corporation (CNOOC), the land use rights of a parcel of land in Tanggu District, Tianjin forRMB157.033 million (HK$178.546 million).

The land is situated in the Haiyang New and Hi-Tech Development Zone, Tanggu District and has a total site area of 349,738.3 square metres.

CNOOC holds 53.62% of the issued share capital of China Oilfield Services, which expects RMB10.476 million gain on disposal of the land and plans to use the fund as general working capital.

China Oilfield Services acquired the land in 2008 with planned to develop it into a production base. Owing to changes in market conditions, the company is unable to fully utilize the land. The company sells the land to CNOOC in order to avoid committing further resources into the development of the land, and the pitfalls and uncertainties relating to the holding of idle land.