Eric Watkins
Senior Correspondent
LOS ANGELES, Dec 14 -- Newfield Exploration Co., Houston, will explore a block in the South China Sea under a production-sharing contract signed with China National Offshore Oil Corp. (CNOOC).
Block 17/08 covers 7,108 sq km in 150-350 m of water in the Pearl River Mouth basin 180 km off Hong Kong. Newfield will have a 100% working interest in the block during the exploration phase, but CNOOC reserves the right to back in to any development with a 51% interest.
Newfield said it plans to reprocess 2D and 3D seismic data and shoot a 3D seismic survey over an undeveloped discovery on Block 17/08. Newfield also is committed to drill wildcat wells during the exploration period, with the first well to be drilled during the next 3 years.
CNOOC and Newfield also signed a geophysical survey agreement on adjacent Block 16/05, which covers 2,064 sq km. Newfield said it will acquire 3D seismic data there.
Newfield will have a 100% interest in Block 16/05, subject to back-in by CNOOC.
Contact Eric Watkins at [email protected].
