BP and CNOOC Sign Production Deal

David Nealis President of Ceres Ltd

BP and China’s offshore oil producer CNOOC signed a production sharing agreement for a deepwater block in the South China Sea.

The block 54/11 covers 4,586 square kilometers in water depths form 370 meters to 2,300 meter. It is in the Pearl River Mouth Basin and close BP’s existing deepwater interests in two blocks there.

This is the 200th contract for production sharing contract between CNOOC and foreign partners. CNOOC said it has the right to participate in up to 51 percent working interest in any commercial discoveries in the new block and it will act as its operator, according to Chinese State run Media 

China, the world’s 2nd largest economy, continues to be the most important market for companies looking for growth and Chinese companies continue to globalize by investing and selling their products in new markets; what is your company’s strategy for engaging China?

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