Chevron, CNOOC sign two production sharing contracts in China

Posted on 16 January 2013

A China subsidiary of Chevron has signed two production sharing contracts with China National Offshore Oil Corporation (CNOOC) for Blocks 15/10 and 15/28.

The blocks are located in Xijiang Sag of Pearl River Mouth Basin in the east part of the South China Sea. They cover a total area of 2,233 sq miles (5,782 sq km).with water depths of 50 to 100 meters.

Under the agreements, Chevron China Energy Company will hold a 100% interest, but CNOOC has the right to participate in up to 51% working interest in any commercial discoveries in the blocks. During the exploration phase, the Chevron subsidiary will be the operator of the two shallow water blocks and will conduct 3D seismic data surveys.

“Exploration of these blocks builds on our strategy to grow our business across the Asia Pacific region, where we are developing LNG, deepwater, shale and sour gas resources,” said George Kirkland, vice chairman, Chevron Corporation.

“We are very pleased to become partner with Chevron again and wish this project to achieve commercial discoveries soon to create economic returns for both companies,” Zhu Weilin, executive vice president and general manager of exploration for CNOOC, said.

Leave a Reply

*

FEATURED MICROSITES


Recent Drilling News

  • 30 January 2015

    Chevron, BP, ConocoPhillips advancing Paleogene discoveries in deepwater GOM

    Chevron and BP will collaborate with ConocoPhillips to explore and appraise 24 jointly-held offshore leases in the northwest portion of Keathley Canyon...

  • 29 January 2015

    PetroQuip deploys BigFoot toe sleeve in Anadarko Basin

    PetroQuip Energy Services successfully implemented its revolutionary toe sleeve, BigFoot, in a recent horizontal completion for an independent operator...

  • 27 January 2015

    US EIA: Lower 48 oil production outlook stable despite expected rig count reduction

    The sharp decline in oil prices over Q4 2014, which has continued in January, is already having a significant effect on drilling activity in the US, according...

  • 27 January 2015

    Hess announces 2015 capital, exploratory budget

    Hess Corp announced a 2015 capital and exploratory budget of $4.7 billion, a 16% reduction from its 2014 actual spend of $5.6 billion. Of this, $2.1 billion (45%) is budgeted for unconventional shale resources...

  • 26 January 2015

    Young professionals program at SPE/IADC Drilling Conference to target future leaders of the industry

    The oil and gas industry is constantly looking to the future. Whether this comes in the form of pushing the limits of pressure...

  • Read more news