Chevron acquires China offshore acreage
Chevron Corp. has entered into production sharing contracts with China National Offshore Oil Corp. for two exploration blocks in the South China Sea.
SAN RAMON, California – Chevron Corp. has entered into production sharing contracts with China National Offshore Oil Corp. for two exploration blocks in the South China Sea.
Under the agreements, Chevron’s China subsidiary Chevron China Energy Co. will hold 100% interest in blocks 15/10 and 15/28 and will maintain operatorship during the exploration phase. The blocks cover a total area of about 2,233 sq mi (5,782 sq km) in Xijiang Sag of the Pearl River Mouth basin. Water depths range from 50-100 m (164-329 ft).
Chevron will assume the cost of 3D seismic surveys in the two blocks, according to CNOOC. The Chinese national oil company has the right to participate in up to 51% working interest in any discoveries deemed commercial.
“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 Chevron vice chairman George Kirkland.
CNOOC in late 2012 announced thestartup of production from the Panyu 4-2/5-1 oil field in the Pearl River Mouth basin.