By the OGJ Online Staff
HOUSTON, May 10 -- China National Offshore Oil Corp. (CNOOC) Thursday announced it has signed a production sharing contract with Santa Fe Energy Resources (China) Ltd. for Block 27/10 in the Pearl River Mouth Basin of South China Sea.
The block, 160 km south of Hong Kong, covers 6,546 sq km. Santa Fe is committed to investing at least $10 million for exploration in the block.
Santa Fe is participating in the exploration of six other blocks off China.
CNOOC Ltd. has an option to take up to 51% working interest in any commercial discoveries made in the block. The dominant producer of oil and gas off China, CNOOC Ltd. is 70.6% owned by CNOOC.
