China and Taiwan to sign joint exploration agreement

China National Offshore Oil Corp. (CNOOC) and Taiwan's Chinese Petroleum Corp. (CPC) will sign a letter of intent next week to jointly explore for oil and gas in the Taiwan Strait, the two companies said today.

Oct. 3, 2001

By the OGJ Online Staff

LONDON, Oct. 3 -- China National Offshore Oil Corp. (CNOOC) and Taiwan's Chinese Petroleum Corp. (CPC) will sign a letter of intent next week to jointly explore for oil and gas in the Taiwan Strait, the two companies said Wednesday.

CPC Pres. Pan Wen-yen will fly to the mainland to sign the agreement for the project, which will involve seismic testing and drilling in a 15,400 sq km (5,946 sq mile) area between southern Taiwan and Guangdong and Fujian provinces.

"Both sides feel the need for exploration," a CPC spokesman said, adding an initial study showed possible substantial oil and gas reserves.

The two companies will explore the Tainan basin.

CNOOC and government-owned CPC have cooperated in conducting geophysical surveys in the area since 1996, and the new agreement is seen as a sign of strengthening economic ties between China and Taiwan.