Chevron, CNOOC sign two production sharing contracts in China
A China subsidiary of Chevron has signed two production sharing contracts with China National Offshore Oil Corporation (CNOOC) for Blocks 15/10 and 15/28.
The blocks are located in Xijiang Sag of Pearl River Mouth Basin in the east part of the South China Sea. They cover a total area of 2,233 sq miles (5,782 sq km).with water depths of 50 to 100 meters.
Under the agreements, Chevron China Energy Company will hold a 100% interest, but CNOOC has the right to participate in up to 51% working interest in any commercial discoveries in the blocks. During the exploration phase, the Chevron subsidiary will be the operator of the two shallow water blocks and will conduct 3D seismic data surveys.
“Exploration of these blocks builds on our strategy to grow our business across the Asia Pacific region, where we are developing LNG, deepwater, shale and sour gas resources,” said George Kirkland, vice chairman, Chevron Corporation.
“We are very pleased to become partner with Chevron again and wish this project to achieve commercial discoveries soon to create economic returns for both companies,” Zhu Weilin, executive vice president and general manager of exploration for CNOOC, said.
