CNOOC and SPC team up

CNOOC Limited<883> announced Sunday that its parent company, China National Offshore Oil Corporation (CNOOC) has signed with Singapore Petroleum Company Limited (SPC) for a joint exploration of block 26/18, located in Pearl River Mouth Basin.

This joint exploration is the first cooperation between CNOOC Ltd. and SPC.

The block 26/18 has an area of 4,961 sq km, with a water depth of 85 – 200 meters. Under the terms of the Production Sharing Contract, SPC will conduct a 2D seismic survey and exploration drilling, in addition to bearing all expenditures incurred during the exploration period.

On the other hand, CNOOC Ltd. will be given the right to participate in up to 51% interests in any commercial discovery in the block.

Zhu Weilin, vice president of CNOOC Ltd. and general manager of the exploration department said, "There's great interest in exploring the potential offshore China, so we could keep continuous flow of new projects for joint exploration of oil and gas resources".

CNOOC Limited is a producer of offshore crude oil and natural gas. It is also an independent oil and gas exploration and production company. The Company has four major oil production areas offshore China, namely Bohai Bay, western South China Sea, eastern South China Sea and East China Sea.

Singapore Petroleum Company Limited is a Singapore-based oil and gas company involved in the exploration, development and production oil and gas. The company looks into petroleum refining, and marketing, distribution and trading of crude oil and refined petroleum products.