China National Petroleum Corp. (CNPC) has awarded exploration rights on two large adjoining blocks in the Northwest Tarim basin to a unit of Exxon Corp.
Esso China Upstream Ltd. plans to begin a 2D seismic survey on the acreage as soon as Chinese agencies approve its contracts with CNPC. Seismic surveying could begin as early as late 1996, but no other work program details were disclosed.
Nearest production to the blocks is in Dong He Tang oil field about 100 miles northeast.
CNPC offered the tracts, each covering about 2.65 million acres in China's Xinjiang Uygur Autonomous Region, in its third international onshore oil and gas tender. In all, CNPC offered eight Tarim tracts and four Junggar basin tracts in the bidding round.
Esso in a late 1993 exploration and development contract with CNPC became the first international oil company to acquire acreage in the Tarim basin.
The Exxon unit operates Block 3, a 3.6 million acre area in the southern Tarim basin, with a 70% interest. In the past 2 years it has acquired 1,400 line miles of 2D seismic data on Block 3, where exploratory drilling is to begin this year.
With assignment of the 5.3 million acre area covered by Blocks 12 and 13, Esso said it holds more acreage in China than any other multinational oil company.
Esso also is evaluating acreage in the Qaidam basin of Northwest China near the Tarim basin and studying prospects near Daqing oil field in Northeast China's Songliao basin.
Other Exxon interests in China include retail service stations, petrochemical investments, and a power generation project. The company also is taking part in various feasibility and technical studies.
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