BEIJING, June 7 (UPI) -- China's National Offshore Oil Corp. signed two production sharing contracts with British Gas to develop two deepwater oil blocks in the South China Sea.
This is the first agreement between CNOOC and British Gas. The two deepwater oil blocks cover a total area of approximately 25,800 square kilometers and a water depth ranging from 180 to 2,100 meters. Four deepwater contracts have already been signed between CNOOC and other foreign partners, state-news agency Xinhua reported.
Under the terms of the contract, British Gas will conduct 2D and 3D seismic data collection in two of the blocks, and will drill one exploration well during the first phase of the exploration period.
British Gas will retain 100 percent of the interests accrued during the exploration phase; CNOOC will have the right to receive up to 51 percent of working interests during any commercial discoveries.
