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CNOOC signs production contract with US Devon
(Xinhua)
Updated: 2005-12-07 16:04

China National Offshore Oil Corporation (CNOOC), China's largest offshore oil producer, has signed a production sharing contract with US-based Devon Energy Corporation recently for a deepwater block in South China Sea, according to CNOOC Wednesday.

The contract about Block 42/05 was signed on Tuesday.

Located in Baiyun Sag of the Pearl River Mouth Basin in the Eastern South China Sea, the block covers a total area of 6,939 square kilometers with water depth ranging from 300 to 2,000 meters.

CNOOC has acquired 2-D seismic data in the block, said CNOOC.

Under the terms of the contract, Devon is committed to conduct a 3-D seismic surveys and wildcat drilling during the exploration period. All expenditures incurred during the exploration period will be borne by Devon.

CNOOC has the right to participate in up to a 51 percent interest in the event of any commercial discovery in the block.

CNOOC and Devon successfully developed Panyu 4-2/5-1 oilfields in Block 15/34 and started commercial production in 2003. This contract is the fourth deepwater contract between CNOOC and its foreign partners.

According to statistics of the Ministry of Land and Resources, there are more than 200 oil or gas-bearing structures and 180 oil-gas fields in the South China Sea. Primary estimates indicate that there are about 23 to 30 billion tons of oil in the geological reserve in the region.



 
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