China Daily reported that China National Offshore Oil Corp, the country biggest marine oil producer signed a production sharing contract on Wednesday with Eni China BV for a deepwater block in the South China Sea.

Mr Zhang Yuxiao a media official at CNOOC Ltd a listed arm of CNOOC said Italy-based Eni will operate the 30/27 block which has a total area of 5,130 square kilometers and lies 400 kilometers off the coast of Hong Kong.

CNOOC said in a statement that Eni will conduct three-dimension seismic surveys and drill one exploration well in the block and cover all expenditures during the exploration period.

CNOOC will have up to a 51% interest in any commercial discoveries in the block.

Source - China Daily

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