Chevron signs up for South China Sea acreage
Chevron China and China National Offshore Oil Corp. (CNOOC) have entered into production sharing contracts (PSC) for two exploration blocks in the South China Sea, the company announced on 16 January 2013.
Under the PSC agreements, Chevron China Energy Co. will hold a 100% interest in shallow water blocks 15/10 and 15/28, located in Xijiang Sag of the Pearl River Mouth Basin in the eastern portion of the South China Sea. During the exploration phase Chevron China Energy Co. will serve as operator of the blocks, which in total cover an area of approximately 5,782 sq. km. in water depths ranging from 50-100m.
Chevron will also be responsible for conducting 3D seismic data surveys during the exploration period. CNOOC said in a release that Chevron will incur all expenditures during this period. Additionally, CNOOC will retain the right to participate up to 51% working interest if commercial discoveries in the blocks are made.
"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.