UK Prime Minister David Cameron will announce an exploration deal between BP and China National Offshore Oil Corporation (CNOOC) during his visit to China.

The deal will involve an exploration project in the South China Sea, according to Sky News.

In its results last week BP announced that it received approval from the Chinese Government to buy an interest in block 42 / 05 in the South China Sea.

According to previous CNOOC estimates the South China Sea area holds the equivalent of 22 billion barrels of oil.