Economy

Markets

Industries

Insights

Reports

Events

Chinese oil company inks deal with Qatar to explore offshore block

(Xinhua)
Updated: 2009-09-02 01:32

A subsidiary of China National Offshore Oil Corporation (CNOOC) inked an agreement with Qatar Petroleum to explore an offshore block of the Gulf country, the Qatar News Agency reported Tuesday.

The report said the total term of the agreement is for 25 years with an initial five-year exploration period when three wells are to be dug up at Block BC with an estimated cost of $100 million.

Related readings:  CNOOC to boost reserves; profit beats estimates  CNOOC H1 net falls 55%  CNOOC to boost offshore business  CNOOC drills new oil, gas discovery in Bohai Bay

The subsidiary, the CNOOC Middle East, is committed to conduct seismic data acquisition, processing and drilling of exploration wells under the terms of the agreement, a press release from the oil giant said.

Block BC (pre-Khuff) is located on an oil-rich area east of the country which is estimated to have huge exploration potential.

"The Block BC exploration accord is one of a series of Exploration and Production Sharing Agreements (EPSA) that Qatar Petroleum has signed with international oil companies to explore and develop Qatar's oil and gas resources," said Abdullah bin Hamad al-Attiya, Qatari deputy prime minister and minister of energy and industry, after signing of the deal.