Chinese Giants Team Up for Offshore Hunt

Chinese oil and gas giant Cnooc announced July 10 that it has agreed a framework deal with peer Sinopec to explore offshore blocks.

The offshore specialist said in a statement that under the deal the state companies will jointly study and explore for oil and gas resources in Bohai Bay off northern China, Beibu Gulf in the South China Sea, and the South Yellow Sea area. The onshore North Jiangsu basin will also be surveyed.

The programme of data sharing and “innovative joint studies” covers 19 blocks overall, with a total area of 26,900km^². It is planned to “make the optimisation of potential exploration zones and targets more scientific, reduce exploration risks and improve the success rate of exploration wells,” the statement said.

The programme will run for three years, Cnooc added. However, it did not note when the co-operation will be launched.

“The expenditures incurred for the joint studies shall not be recovered from the costs of any petroleum contract that may be signed in the future,” Cnooc said.