Oil firms to share output

CNOOC Ltd said its parent, China National Offshore Oil Corp, has signed a production sharing contract with Singapore Petroleum Co for a block in the South China Sea.

The block, located at the mouth of the Pearl River Basin, covers 4,961 square kilometers, with water depths of 85 to 200 meters, said CNOOC, China's dominant offshore oil and gas firm.

All expenditures incurred during exploration will be borne by SPC, and CNOOC has the right to participate in up to a 51-percent interest in the event of any commercial discovery in the block. The production sharing contract is the first cooperation between CNOOC and SPC.