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CNOOC to develop oilfields with US firm

www.chinanews.cn 2005-10-19 10:35:10

(Source: China Daily)

Oct. 19 - The nation's third largest oil producer, China National
Offshore Oil Corp (CNOOC), yesterday signed agreements with Texas
American Resources Company (TARC) to explore two offshore areas in the
eastern South China Sea.
The two companies signed a production sharing contract for Block 03/27
and a geophysical agreement for Block 28/20. Under the terms of the
agreement, TARC will fund all the exploration costs and CNOOC will have a
51 per cent share in the development and production of the areas after
any commercial discoveries, a TARC statement said.
Block 03/27, located in the Pearl River estuary basin, covers a total
area of 10,569 square kilometres, with water depth ranging from 50 to 100
meters.
The other block, with an area of 7,625 square kilometres, is also located
in the same area.
"The signing of the agreements is a good start. We sincerely hope that
TARC, with its expertise and management skills, will be successful," said
Zhu Weilin, CNOOC's vice-president and general manager of its exploration
department.
CNOOC, which has a monopoly in China's offshore oil sector, is stepping
up efforts to tap reserves to boost production.
The oil giant earlier this month announced it had made a new discovery in
Bohai Bay, in an area called Luda 27-1.
Also in the same bay, CNOOC last month said an oilfield began production.
It is able to produce approximately 3,200 barrels of oil per day from its
nine wells.
CNOOC said it plans to double oil production within the next five years.
The company produced 64.6 million barrels of oil in the first half of
this year.
US-headquartered TARC, which established its Beijing office in May, said
this is its first concrete project in China.
"The signing of the two agreements mean TARC has made significant
improvements in its partnership with China," David Honeycutt, president
of TARC, said in a statement.
The project with CNOOC was based on the assessment of more than 10
potential projects, both offshore and onshore, TARC said.
TARC, formed in 1990, is an Austin-based independent private oil company.

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