Chevron Signs Exploration Deal in South China Sea

Oil major Chevron's Chinese subsidiary, Chevron China Energy Company, has entered into a pair of production sharing agreements with China National Offshore Oil Corp. (CNOOC) .

The agreements cover two exploration blocks in the South China Sea's Pearl River Mouth Basin, designated 15/10 and 15/28, and give Chevron China 100% exploration interests in each. The company will operate the exploration operations going forward, covering a total surface area of approximately 2,233 square miles, with water depths from 50 to 100 meters.

"Exploration of these blocks builds on our strategy to grow our business across the Asia Pacific region, where we are developing LNG, deepwater, shale and sour gas resources," Chevron VP George Kirkland is quoted by the company as saying.


CNOOC has the right to participate in up to 51% working interest in any commercial discoveries in the blocks.

As of this writing, shares of Chevron are up 0.3% at $113.75. CNOOC shares are down 0.5% at $207.00.

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The article Chevron Signs Exploration Deal in South China Sea originally appeared on Fool.com.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Chevron. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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