China National Offshore Oil Company Limited (CNOOC Ltd) announced that its parent China National Offshore Oil Corporation (CNOOC) has signed two production sharing contracts (PSC) with US-based Newfield Exploration Company.
The two contracts are for blocks numbered 22/15 and 16/05, both in the South China Sea.
Block 22/15 in the Beibu Gulf Basin in the western South China Sea covers 5,228 square km, with water depth of 10 to 60 meters.
Newfield will reprocess the two-dimensional seismic data, a technical survey containing geological clues for hidden oilfields, and conduct drilling operations.
Located in the Pearl River basin, block 16/05 covers 2,064 square km.
CNOOC and Newfield had signed a geophysical survey agreement on this block in 2005, under which Newfield committed to exploration drilling.
Under the contracts, all costs incurred during the exploration will be borne by Newfield.