Cnooc, PetroChina Sign Petroleum Contract

Cnooc China, a unit of Cnooc, has signed a petroleum contract with PetroChina for Beibu Gulf 23/29 Block and Beibu Gulf 24/11 Block, Cnooc said April 24. Beibu Gulf 23/29 Block covers a total area of 980 km² while Beibu Gulf 24/11 Block covers a total area of 464 km².

According to terms of the petroleum contract, PetroChina will act as the operator during the exploration period and bear 70% of direct exploration expenditures; Cnooc China will bear the other 30% of direct exploration expenditures.

Any indirect exploration expenditures will be borne separately, Cnooc said. Once entering into the development and production phase, the two parties, each with 50% participating interests in the blocks, will set up a joint operation organisation to act as joint operators.