PARIS, Dec. 20 (UPI) -- French energy services contractor Technip said Friday it signed a five-year deal with its Chinese counterparts to help exploit reserves in Chinese waters.
Technip said it signed the deal with China Offshore Oil Engineering Co. Ltd. to install the infrastructure needed to exploit possible reserves in waters greater than 650 feet deep.
The U.S. Energy Information Administration reports about 15 percent of China's oil production comes from offshore fields. The Bohai Bay basin is considered the largest of the offshore reserves.
China National Offshore Oil Corp. declared two oil discoveries in the Bohai Bay off the Chinese coast in July. The area is estimated to hold as much as 146 billion barrels of oil.
Technip said the latest deal builds on a solid foundation in the Chinese oil industry.
Earlier this week, the company was awarded a $400 million contract for similar developments in Kuwait.