By OGJ editors
HOUSTON, Feb. 08 -- Kerr-McGee China Petroleum Ltd., a wholly owned affiliate of Kerr-McGee Corp., signed a production-sharing contract with China National Offshore Oil Corp. (CNOOC) for deepwater Block 43/11, more than doubling its acreage in China to 4.1 million acres.
Kerr-McGee holds a 100% foreign contractor's interest in the first phase of exploration. CNOOC has the right to participate with up to a 51% interest if Kerr-McGee enters the development phase.
Block 43/11, 220 miles southeast of Hong Kong, covers 2.4 million undeveloped acres in 5,000-10,000 ft or more of water in the South China Sea. It is Kerr-McGee's first deepwater exploration contract with CNOOC.
Kerr-McGee operates several fields in China's Bohai Bay, including CFD 11-1 and CFD 11-2 on Block 04/36 (OGJ Online, July 23, 2004). Development of CFD 11-3 and CFD 11-5 fields, also on Block 04/36, are in the final approval stages. The company holds an 82% predevelopment foreign contractor's interest in these fields.
