BEIJING, Sept. 14 (UPI) -- A deal to acquire more than 2,600 square miles of oil concessions in the South China Sea was approved by the Chinese government, British oil company BP said.
BP said it acquired a 40.82 percent interest in a 2,679-square-mile block in the Pearl River basin in the South China Sea from Devon Energy. Devon announced last year it was offloading much of its international portfolio to focus on domestic assets in the United States.
"This new opportunity in block 42/05 is a significant step to increasing our footprint in the region, as well as building on our existing business in the South China Sea," said William Lin, BP's head of Asia Pacific exploration and production, in a statement announcing the acquisition.
U.S. supermajor Chevron acquired the remaining 59.18 percent interest in the deal to explore the deep waters of the South China Sea.
Oil exploration in deep waters is under scrutiny following the April sinking of the Deepwater Horizon oil platform in the Gulf of Mexico. BP, which is responsible for remediating the subsequent oil spill, announced Tuesday that it was working on a relief well that would ultimately resolve the situation at its Macondo well at the bottom of the gulf.
Chevron said last week when it acquired its stake in the South China Sea that it would use its "industry-leading" safety practices when exploring the region.
