Chevron has announced that its China subsidiary has entered into production sharing contracts (PSC) with China National Offshore Oil Corporation (CNOOC) for two exploration blocks in the South China Sea's Pearl River Mouth Basin.
Under the PSC agreements, Chevron China Energy Company will hold a 100 percent interest in Blocks 15/10 and 15/28 in the Pearl River Mouth Basin. During the exploration phase Chevron China Energy Company will be the operator of the two shallow water blocks, which in total cover an area of approx. 2,233 sq miles (5,782 sq km).
'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 Corp.
Melody Meyer, president, Chevron Asia Pacific Exploration and Production, said, 'We welcome the opportunity to partner with CNOOC and apply our industry-leading exploration capabilities in the prospective Pearl River Mouth Basin.'
The blocks were included in 19 blocks offered for licensing by CNOOC in 2011
The awarded blocks were offered by CNOOC in 2011. On offer were 19 blocks covering an area of 52,006 sq km. Twelve blocks were available in the east area of the South China Sea and seven blocks in the west area of the South China Sea.