China National Offshore Oil Corporation (CNOOC) has signed production sharing contracts (PSCs) with KUFPEC (China) for three blocks in the South China Sea.
The blocks, 52/22, 52/26 and 63/13, are situated in the Yinggehai Basin of the South China Sea.
The 1,896km² block 52/22 has a water depth of 60m to 300m, while block 52/26 spans 1,783km² in water depths of 80m to 160m.
The 698km² Block 63/13 has water depths of 80m to 140m.
CNOOC will operate the three blocks and KUFPEC (China) will have a 30% working interest in the development of a commercial discovery in any of the blocks.
Both companies will carry out 3D seismic data surveys and exploration well drilling.
KUFPEC CEO Shaikh Nawaf S Al-Sabah said: "Our new exploration licenses allow us continue to work with CNOOC to take full advantage of our excellent working relationship in the Yacheng Field in the South China Sea, where KUFPEC (China) holds a 30% working interest."
The new exploration activities form part of KUFPEC’s strategy to expand its oil and gas exploration and production operations worldwide.
KUFPEC is planning to increase its production to 200,000 barrels of oil equivalent per day with reserves of 650 million barrels of oil equivalent by 2020, maintaining it until 2030.
Currently, the company is active in 15 countries with 63 projects in Asia, Africa, Middle East, Europe, North America and Australia.