CNOOC's parent in oil exploration deal

CNOOC Ltd, the country's biggest offshore oil and gas explorer, has announced that its parent company China National Offshore Oil Corporation has signed two oil production sharing contracts. The deal with Sydney-listed Roc Oil Company's China branch is for two blocks in the South China Sea.

According to the contract, ROC will act as the operator during the exploration period. CNOOC will then have the right to participate in up to 51 percent of the working interest in any commercial discoveries of the blocks.

The two blocks are located in the Pearl River Mouth Basin in the South China Sea. Block 16/07 covers a total area of 2,743 square kilometers and has a water depth of about 100 meters. Block 03/33 covers a total area of 2,367 sq km and has a water depth of 65 to 145 meters.