CNOOC Ltd.'s parent company China National Offshore Oil Corp. has sealed an agreement with PNOC Exploration Corp. to undertake joint exploration and development of oil and gas in the South China Sea.
In a letter of intent signed between CNOOC and PNOC EC, the parties agreed to form a joint working committee to select possible areas in the South China Sea that would be suitable for exploration and development.
The parties also agreed to engage in a joint program to review, assess, and evaluate available relevant geological, geophysical, and other technical data to determine the oil and gas potential of the area.
The LOI was signed by the president of CNOOC, Fu Chengyu, and the president and CEO of PNOC EC, Rufino B. Bomasang.
According to Fu Chengyu, "Both companies will benefit from the signing of the LOI aimed at advancing the exploitation of oil and gas in the to-be agreed areas in the South China Sea."