CNOOC announced on 18 December 2018 that it has signed Strategic Cooperation Agreements with 9 international oil companies including: Chevron, ConocoPhillips, Equinor, Husky, KUFPEC, Roc Oil, Shell, SK Innovation and TOTAL, respectively, on two blocks in the South China Sea.  According to the agreements, the Strategic Cooperation Areas are located in the Pearl River Mouth Basin offshore China, including Area A and Area B (existing mining license areas and the contract areas are not included). Area A is approximately 15,300 sq km, with a water depth of 80-120 meters and only open for the deep layers below Enping Formation of Paleogene. Area B is approximately 48,700 sq km, with a water depth of 500-3,000 meters and open for all the layers.  The agreements will facilitate the establishment of a long term and stable cooperation and share the development opportunities to a certain extent in the Strategic Cooperation Areas, creating conditions for the final signing of contracts. CNOOC Limited, as an independent oil and gas exploration and production company, is the only vehicle through which CNOOC engages in exploration, development, production and sale of crude oil and natural gas.   Background Information  In May 2018 CNOOC, during 2018 bidding round announcement, introduced Strategic Cooperative Agreement (SCA) to set up a long term and stable partnership relations with cooperation partners. Two blocks, Block A and Block B, have been opened with area of 20,000 sq km and 52,000 sq km respectively for an in-house study during the agreement. CNOOC will sign SCA with each alliance member and it is non-exclusive.   SCA is 3 years term. To be the SCA member, US$ 100,000 membership dues is obligation plus a commitment of an annual exchange of the technical research result. During/after the agreement members have priority to propose cooperation opportunity according to the members interests, including procure data and information, signing PSC with CNOOC.   Block A, covering 20,120 sq km, is located in the north shelf of the Pearl River Mouth Basin. It is a relatively mature exploration area in which there are Xijiang, Panyu, Huizhou and Lufeng fields on producing. The fields have the main reservoir in the Miocene Zhujiang Formation. The Block A is opened focusing on deep formations â Eocene Enping and Wenchang formations.   Block B, covering 52,845 sq km, is located in deep water (500 â 3,500 m) area of the Pearl River Mouth Basin. Currently only LW 3-1/LH 34/LH 29 gas fields have been found in the block, and large area of the block remains undrilled.
CNOOC announced on 18 December 2018 that it has signed Strategic Cooperation Agreements with 9 international oil companies including: Chevron, ConocoPhillips, Equinor, Husky, KUFPEC, Roc Oil, Shell, SK Innovation and TOTAL, respectively, on two blocks in the South China Sea. According to the agreements, the Strategic Cooperation Areas are located in the Pearl River Mouth Basin offshore China, including Area A and Area B (existing mining license areas and the contract areas are not included).