China National Offshore Oil Corp (CNOOC) plans to invest 20 billion yuan in Zhuhai in Guangdong province to build an offshore engineering base and a gas terminal, a move that will further expand its presence in southern China.

The country's largest offshore oil producer signed a framework agreement with the local government in Zhuhai for the investment last weekend, said a source with CNOOC yesterday. The 20-billion-yuan investment will mainly go towards construction of the engineering base, he said.

But both parties have not yet decided when to complete the 20-billion-yuan investment, he said, declining to be named.