CNOOC parent signs production sharing deals with Newfield over China oil blocks

HONG KONG CNOOC Ltd said its parent China National Offshore Oil Corporation (CNOOC) has signed production sharing contracts with US-based Newfield Exploration Co (Newfield) over two oil & gas blocks 22/15 and 16/05 offshore China.

Block 22/15, located in Beibu Gulf Basin in Western South China Sea, covers a total area of 5,228 square kilometers, with water depth of 10 to 60 meters.

Newfield will reprocess 2D seismic data and conduct drilling operations.

Block 16/05, located in Pearl River Mouth basin, covers a total area of 2,064 square kilometers.

CNOOC and Newfield had on Dec 12, 2005 signed a geophysical survey agreement on the block.

Under the terms of the contracts, all expenditures incurred during the exploration period will be borne by Newfield.

CNOOC Ltd has the right to participate in up to 51 pct interest in the event of any commercial discovery in the two blocks.