China Knowledge quoted a spokesperson said China National Offshore Oil Corp the parent company of China largest offshore oil producer CNOOC Ltd may probably step up exploration in South China Sea to sink its first deepwater well in early next year.

The spokesperson noted the oil exploration may start from January or February 2012 but did not disclose the timetable and other details.

A person familiar with the matter said CNOOC and other partners including US based Chevron Corp and Husky Energy Inc a Canadian oil company controlled by Hutchison Whampoa Ltd will jointly start the oil exploration in South China Sea, adding that CNOOC holds a 51% stake in the oil project.

Analysts said the exploration may start in the northern area of the South China Sea to avoid territorial rows with neighbors, such as Vietnam and the Philippines. In addition, CNOOC has agreed to set up a joint venture with Canada Nexen Inc for deepwater exploration in six wells in the Gulf of Mexico.

(Sourced from China Knowledge)