Total, Shell and other oil majors to invest in developing Chinese acreage

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China signaled its openness for business with a raft of deals that’ll give oil majors including Royal Dutch Shell Plc new opportunities to develop fields in partnership with the nation’s biggest offshore explorer.

China National Offshore Oil Corp. said in Beijing on Tuesday that it had inked oil and gas accords with nine firms. The signing ceremony followed President Xi Jinping’s address to party cadres marking 40 years of reform and broadly underlining the nation’s commitment to global trade.

The agreements cover 64,000 square kilometers in the Pearl River basin, to a depth of up to 3,000 meters. In addition to the Netherlands-based Shell, France’s Total SA and U.S.-based Chevron Corp. were also awarded parcels. All three majors hold existing production sharing contracts with CNOOC.

The other firms involved are: ConocoPhillips, Equinor ASA, Husky Energy Inc., Kuwait Foreign Petroleum Exploration Co., Roc Oil Co., and SK Innovation Co.

CNOOC has signed more than 200 PSCs since its inception in the early 1980’s, even as it has increasingly relied on its own resources to tap deep-water projects in Chinese waters — most recently the giant Lingshui 17-2 gas field in the South China Sea.

The company has promised to increase spending and raise output, heeding Xi’s call for enhanced energy security as imports grow and the nation contends with the U.S. over trade.

“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’s listed unit said in a statement.

 

Source: Energy Voice

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