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CNOOC Signs Contract to Explore S. Yellow Sea
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China National Offshore Oil Corporation (CNOOC), China's largest offshore oil corporation, has signed a production-sharing contract (PSC) with US-based Devon Energy Corporation for a block in the South Yellow Sea, sources with CNOOC said on Wednesday.

The contract for block 11/34 was signed on Tuesday.

The block covers a total area of approximately 10,840 square kilometers in the northern part of the South Yellow Sea Basin. Water depths in the block range from 20 to 60 meters.

CNOOC has acquired 2-D seismic data and drilled wells in block 11/34, one of the blocks CNOOC offered publicly in 2005.

Under the contract, Devon is committed to conducting a 2-D seismic survey and wildcat drilling during the exploration period. All expenditure used in the course of exploration will be borne by Devon. CNOOC has the right to a maximum 51-percent interest in any commercial discovery made in the block. 

The South Yellow Sea is a new exploration area. CNOOC's cooperation with Devon is expected to be another win-win project for both companies, according Zhu Weilin, vice president of CNOOC. 

This contract is the eleventh between CNOOC and Devon after the two signed a PSC for a deepwater block in the South China Sea last December. 

(Xinhua News Agency February 23, 2006)

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