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13.04.2012

CNOOC, Eni Sign Offshore Oil Pact

China National Offshore Oil Corp, the country's biggest marine oil producer, signed a production-sharing contract on Wednesday with Eni China BV for a deepwater block in the South China Sea.

Italy-based Eni will operate the 30/27 block, which has a total area of 5,130 square kilometers and lies 400 kilometers off the coast of Hong Kong, according to Zhang Yuxiao, a media official at CNOOC Ltd, a listed arm of CNOOC.

CNOOC said in a statement that Eni will conduct three-dimension seismic surveys and drill one exploration well in the block and cover all expenditures during the exploration period.

CNOOC will have up to a 51 percent interest in any commercial discoveries in the block.

Eni, which entered China in 1980, holds a 16.77 percent share in two offshore blocks, 16/08 and 16/19, in the South China Sea, which have a daily output of about 10,000 barrels of oil equivalent.

It's also participating in the 28/20 block as an operator, according to the company's website.

Zhu Weilin, executive vice-president of CNOOC Ltd, said that deepwater oil and gas in the South China Sea will be one of the company's main sources of medium- and long-term development.

Copyright 2012, China Daily. All rights reserved.

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