China and Taiwan to sign joint exploration agreement

Oct. 3, 2001
China National Offshore Oil Corp. (CNOOC) and Taiwan's Chinese Petroleum Corp. (CPC) will sign a letter of intent next week to jointly explore for oil and gas in the Taiwan Strait, the two companies said today.

LONDON, Oct. 3 -- China National Offshore Oil Corp. (CNOOC) and Taiwan's Chinese Petroleum Corp. (CPC) will sign a letter of intent next week to jointly explore for oil and gas in the Taiwan Strait, the two companies said Wednesday.

CPC Pres. Pan Wen-yen will fly to the mainland to sign the agreement for the project, which will involve seismic testing and drilling in a 15,400 sq km (5,946 sq mile) area between southern Taiwan and Guangdong and Fujian provinces.

"Both sides feel the need for exploration," a CPC spokesman said, adding an initial study showed possible substantial oil and gas reserves.

The two companies will explore the Tainan basin.

CNOOC and government-owned CPC have cooperated in conducting geophysical surveys in the area since 1996, and the new agreement is seen as a sign of strengthening economic ties between China and Taiwan.

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