Kuwait Foreign Petroleum Exploration Company (Kufpec), has entered into a strategic deal with the state-owned China National Offshore Oil Corporation (CNOOC) to carry out exploration work at the Pearl River mouth basin of offshore China.
The Kuwaiti overseas upstream-focused subsidiary of state-owned Kuwait Petroleum Corporation is among nine exploration and production (E&P) companies with whom CNOOC has signed agreements covering exploration in the area.
The firms that will undertake exploration in Areas A and B of the acreage, are:
- Chevron (USA)
- ConocoPhillips (USA)
- Kufpec (Kuwait)
- Total (France)
- Equinor (Norway)
- Husky (Canada)
- Roc Oil (Australia)
- Shell (UK/The Netherlands)
- SK Innovation (South Korea)
Area A covers around 15,300 square kilometres (sq km) in water depths of 80 to 120 metres and is only open for the deep layers below the Paleogene Enping formation.
Area B extends more than 48,700 sq km in water depths of 500 to 3,000 metres and is open for all the subsurface layers.
"The agreements will facilitate the establishment of a long term and stable cooperation and share the development opportunities to a certain extent in the Strategic Cooperation Areas, creating conditions for the final signing of contracts," CNOOC said in a statement.
Chinese companies are trying to tap more resources at home to replace dwindling production at mature oil and gas fields and to feed growing domestic demand for oil and gas.
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