Persistent rumours have it that CNOOC, a Chinese government-owned oil and gas group, is planning to buy Royal Dutch/Shell's 34% stake in Woodside.

It's unclear whether the rumours are based on leaks or speculation, but Shell's global shake-up in response to its oil reserves scandal and CNOOC's $US850 million ($A1.07 billion) bond issue have given the scuttlebutt legs.

Woodside and Shell would not comment on the speculation, which will do nothing to hose down the gossip. Shell's stake in Woodside was valued by the market yesterday at $4.85 billion - much more than CNOOC's bond issue, but CNOOC also has huge cash reserves to call upon.

Meanwhile back in Mauritania, the Merou-1 well is 35km north-west of the Chinguetti field and 25km west of the Tiof oil discovery, situated in water 1,810 metres deep.

A Hardman Resources report said the well was spudded on 20 November by the Stena Tay drilling rig and reached a total depth of 3060 metres on the 26th.

“Preliminary drilling and wireline logging information, including pressure and fluid sampling data, indicate that thin hydrocarbon bearing sands have been intersected by the well.”

“The initial assessment is that these are sub-commercial accumulations, however more detailed analysis is needed before any further comment can be made.”

Merou-1 was testing a structural/stratigraphic trap of Miocene aged channel sandstones draped over a large salt diaper.

The interests in PSC B are Woodside 53.846%, Hardman Resources 21.6%, BG Group 11.63%, Premier Group 9.231% and Roc Oil group 3.693%.