HONG KONG – CNOOC China Ltd. has signed a petroleum contract with PetroChina Co. for two blocks in the South China Sea.
Beibu Gulf 23/29 block and Beibu Gulf 24/11 block are in the Fushan sag and Leidong sag regions.
Block 23/29 covers an area of 980 sq km (378 sq mi) in water depths of 0-85 m (0-279 ft). Block 24/11 extends more than 464 sq km (179 sq mi) in 20-40 m (65-131 ft) of water.
PetroChina will serve as operator during the exploration period and carry 70% of the direct exploration expenditures, the remainder handled by CNOOC China.
On entering the development and production phase, the two parties, each with a 50% share of the contract area, will form a joint operation organization.