China Direct

BP and CNOOC sign agreement for third deepwater block in S China Sea

 

On 16th July CBI member BP and CNOOC signed a production sharing agreement for Block 54/11 in the deepwater Pearl River Mouth Basin, South China Sea.

The block covers 4,586 square kilometres in water depths from 370 metres to 2,300 metres, and is close to BP's existing deepwater interests in Blocks 43/11 and 42/05.

CNOOC will be the operator of 54/11. Terms of the production sharing agreement were not disclosed.

Liming Chen, President of BP China, said, "This builds on our South China Sea presence creating a strong base for future exploration success for China and for BP."

Please click here to read the full press release by BP.

UK Company BP continues to tap into China

 

[Image courtesy of www.bp.com]

CBI member BP recently received approval from China's Ministry of Commerce to explore for natural gas in the South China Sea in what will be the British energy giant's second deepwater project in China. BP now has permission to establish a presence in a gas field known as block 43/11, which is operated by China National Offshore Oil Corporation.

BP will hold a 40% stake in the project during exploration and later receive 20% of any production. BP and CNOOC first signed a cooperation agreement for the project during Chinese Vice-Premier Li Keqiang's visit to London in January.

BP has invested around $5 billion in China since its entry into the country in the late 1970s to the end of 2010.

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