China's largest offshore oil and gas producer, China National Offshore Oil Corp (CNOOC) has announced that it has signed Strategic Cooperation Agreements with 9 international oil companies, including Chevron, ConocoPhilips, Equinor, Husky, KUFPEC, Roc Oil, Shell, SK Innovation and Total.
According to the agreements, the Strategic Cooperation Areas are located in the Pearl River Mouth Basin offshore China, including Area A and Area B.
The agreements will facilitate the establishment of a long term and stable cooperation and share the development opportunities leading to the final signing of contracts.
Wood Mackenzie's research director Andrew Harwood said: "The two Strategic Cooperation areas are understood to be prospective for ultra-deepwater, high pressure/high temperature, or low porosity/low permeability reservoirs. The international oil companies all have existing E&P operations in the country, and the agreements further demonstrate their commitment to involvement in China's energy sector."
In a statement CNOOC said "that Area A is 15,300 square kilometres, with a water depth of 80-120 meters and only open for the deep layers below Enping Formation of Paleogene. Area B is approximately 48,700 square kilometres, with a water depth of 500-3,000 meters and open for all the layers."
Harwood added: "CNOOC has set its sights on raising gas reserves by 50% by 2025 and developing further its deepwater expertise. These agreements will help the company achieve its targets and hone its technical skillset."