BP and China National Offshore Oil Corp. (CNOOC) Ltd. signed a production sharing agreement for Block 54/11 in the South China Sea, the two companies confirmed on July 16.
The block covers 4586sq km in water depths ranging from 370-2300m. Block 54/11 is located in the deepwater Pearl River Mouth Basin, near BP’s existing deepwater interests in Blocks 42/05 and 43/11 and, which the company received in 2010 and 2011.
CNOOC said the company will operate Block 54/11, and will maintain the right to participate in up to 51% working interest in any commercial discoveries in the block. BP will be responsible for all expenditures incurred during the exploration period.
Liming Chen, President BP China, said: “This builds on our South China Sea presence creating a strong base for future exploration success for China and for BP.”