By OGJ editors
HOUSTON, Aug. 14 -- Newfield Exploration Co., Houston, is committed to drill an exploration well during the first 3 years of a new 7-year production-sharing contract (PSC) off southern China. The 1.3-million-acre Block 22/15 is in the Beibuwan basin northwest of Hainan Island.
This PSC is one of two in the South China Sea that Newfield recently signed.
The other PSC was originally a geophysical survey agreement (GSA) on Block 16/05 that is being converted following encouraging results of a recent 3D seismic survey. The GSA was included with a PSC on Block 17/08 signed in December 2005 when Newfield became active in the region (OGJ Online, Dec. 14, 2005).
Newfield is planning to drill two exploration wells in first-half 2008, one each on Blocks 16/05 and 17/08.
The company's three PSCs cover about 3.5 million acres in the region. China National Offshore Oil Corp. has the option to participate, with a 51% interest, in any development.
