AMOCO TO EXPLORE OFF CHINA

A unit of Amoco Corp. has signed a contract with China calling for exploration on 6.7 million acres in the South China Sea. Amoco Orient Petroleum Co.'s production sharing agreement covers Contract Area 40/06 in the Pearl River Mouth basin, about 185 miles southeast of Hong Kong. It calls for Amoco to conduct seismic surveys and other studies, with an option for exploratory drilling. China National Offshore Oil Corp. will also have an option to acquire as much as 51% interest in any

Aug. 20, 1990

A unit of Amoco Corp. has signed a contract with China calling for exploration on 6.7 million acres in the South China Sea.

Amoco Orient Petroleum Co.'s production sharing agreement covers Contract Area 40/06 in the Pearl River Mouth basin, about 185 miles southeast of Hong Kong.

It calls for Amoco to conduct seismic surveys and other studies, with an option for exploratory drilling. China National Offshore Oil Corp. will also have an option to acquire as much as 51% interest in any commercial discovery.

Amoco operates four other contract areas in the same basin. In 1987 it found oil in Contract Area 29/04, about 75 miles northwest of 40/06.

It expects to begin seismic work in the new contract area by yearend.