China's top offshore oil producer is aiming to team up with foreign companies in its drive for for oil and gas exploration.
CNOOC offshore exploration Image: CNOOC |
China National Offshore Oil Corp (CNOOC) has invited international firms to bid for 26 offshore blocks situated in the South China Seas and in the northern Bohai Bay area.
The bid will see Chinese and foreign oil companies cooperating to find oil and gas deposits around China. The invitation, first announced in June this year, is for foreign oil companies to bid for blocks in the disputed western part of the South China Seas.
Combined, the blocks cover a total area of 73,754 kilometres, with depths ranging from 700 to 3,000 metres. In terms of the number of blocks, the offering is the largest from a state-owned oil company since the 1990s and shows “CNOOC really wants to beef up its exploration in offshore China with the help of international firms”, says Huang Xinhua, a geologist at energy consultancy IHS.
Potential investors have until November to assess all the data, after which time they will be expected to bid for the potentially rich reserves. If a commercially viable field is discovered, CNOOC reserves the right to hold a 51% stake in the project.