China National Offshore Oil Corp. Ltd.(CNOOC) has opened up to overseas investors 22 untapped oil and gas areas covering 44,015 sq miles (114,050 sq km, mostly in South China Sea, China Securities Journal reports. Most of these 22 areas are in shallow waters, including three in Yellow Sea, four in East China Sea, 15 in South China Sea. Only one area is as deep as 656 to 6562 ft (200 to 2,000 m). This is the largest round of bidding in terms of scale for years, a staff member with CNOOC told the newspaper. These areas are not open to domestic investors, according to CNOOC. Several transnational petroleum companies are reported to be considering the specific status of these areas before signing contracts. By May 2006, CNOOC had signed 172 contracts and agreements with 75 oil companies worldwide on offshore oil exploration and production. Annual production of these projects now account for 65% of the country's total oil and gas production. The company's deep-water strategy, which has seen it team up with Canada's Husky Energy controlled by Li Ka-shing last year, has attracted a large amount of foreign capital since the 1980s. According to China's law, CNOOC has the exclusive right to sign production-sharing contracts with foreign firms, under which the subsidiary has to bear all the exploration risks. CNOOC Ltd. is entitled to a 51% stake in the development and production of any resources discovered. Source: Xinhua |
Recommended Reading
Chevron Adds to Carbon Capture Tech Portfolio with ION Investment
2024-04-04 - Chevron New Energies led a funding round that raised $45 million in Series A financing for ION Clean Energy, according to a news release.
Sunoco’s $7B Acquisition of NuStar Evades Further FTC Scrutiny
2024-04-09 - The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act for Sunoco’s pending acquisition of NuStar Energy has expired, bringing the deal one step closer to completion.
Exxon Mobil, Chevron See Profits Fall in 1Q Earnings
2024-04-26 - Chevron and Exxon Mobil are feeling the pinch of weak energy prices, particularly natural gas, and fuels margins that have cooled in the last year.
Oil and Gas Chain Reaction: E&P M&A Begets OFS Consolidation
2024-04-26 - Record-breaking E&P consolidation is rippling into oilfield services, with much more M&A on the way.
Equitrans Midstream Announces Quarterly Dividends
2024-04-23 - Equitrans' dividends will be paid on May 15 to all applicable ETRN shareholders of record at the close of business on May 7.