Chevron to operate ex-Devon blocks off China

A Chevron Corp. unit will be exploration-phase operator of three deepwater blocks in the South China Sea under amended production sharing contracts formerly held by Devon Energy Corp., reports China National Offshore Oil Corp.

Sept. 7, 2010

By OGJ editors
HOUSTON, Sept. 7 -- A Chevron Corp. unit will be exploration-phase operator of three deepwater blocks in the South China Sea under amended production sharing contracts formerly held by Devon Energy Corp., reports China National Offshore Oil Corp.

CNOOC Ltd., a unit of the state-owned company, has the right to back in for interests as high as 51% if commercial discoveries are made.

Devon sold its interests in the blocks as part of a strategy to concentrate on North American exploration and production.

Chevron acquired a 59.18% interest in Block 42/05 in the Baiyun Sag area of the Pearl River Mouth basin in the eastern South China Sea and 100% interests in Blocks 64/18 and 53/30 in the Qiong Dong Nan basin of the western South China Sea. BP acquired the remaining Devon interest in Block 42/05.

Block sizes are 42/05, 6,939 sq km; 64/18, 7,712 sq km, and 53/30, 6,313 sq km. Water depths are 300-2,000 m.