HOUSTON -- Newfield Exploration Co. has signed two new production-sharing contracts (PSCs) in the South China Sea. Newfield now has three PSCs that cover more than 14,200 sq km (5,483 sq mi). The China National Offshore Oil Corp. has the option to participate in any development with a 51% interest.
Newfield became active in the region in Dec. 2005, signing a PSC for block 17/08 and a geophysical survey agreement (GSA) on block 16/05. The GSA is being converted to a PSC following encouraging results of a recent 3D seismic survey.
Newfield plans to drill two exploration wells in the first half of 2008, including one on each of the blocks.
Newfield's second new PSC covers block 22/15, a 5,228-sq-km (2,019 sq mi) area in the Beibuwan basin, northwest of Hainan Island in southern China. The contract has an exploration term of seven years with an exploration well commitment in the first three years.