China, US Join Hands in Developing Offshore Oil

The China National Offshore Oil Corporation (CNOOC) and Burlington Resources China Ltd. of the United States Tuesday signed a contract to explore a new block of oil resources in the South China Sea.

To date, CNOOC has signed a total of 142 contracts with 70 oil companies from 18 countries and regions, according to a CNOOC source.

The block, coded 16/21, lies in the Pearl River mouth of the South China Sea, with neighboring offshore oilfields Lufeng 13-1, the group of Huizhou oilfields, and Liuhua 11-1 oilfield which is the largest in the South China Sea.

The 16/21 block is very promising and is rich in oil and gas resources, said experts from the two companies after analyzing and studying the 3-D seismic data and relevant geological data concerning the block.

Under the contract signed, Burlington Resources China Ltd. will undertake the investment risk alone and take charge of drilling wells within the block.

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