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CNOOC, Husky sign oil exploration contract
(Xinhua)
Updated: 2004-08-17 10:25

China National Offshore Oil Corporation (CNOOC) inked a petroleum exploration contract with Husky Oil China Ltd, a subsidiary of Canada-based Husky Energy Ltd, on Monday for deepwater block 29/26 in the Pearl River Mouth Basin of the Eastern South China Sea.

"This is the second deepwater exploration contract signed between CNOOC and Husky, and also seventh total contract signed between them," said Zhang Guohua, the senior vice president of CNOOC.

Block 29/26, one of the 12 deepwater blocks offered by CNOOC in 2002 for open tender, is located about 300 kms southeast off Hong Kong. Covering a sea area of 3,965 square kilometers, the block has a water depth averaging 300 to 2,000 meters.

Under the terms of the contract, Husky will fund all exploration costs and has the right to receive up to 51 percent working interest at no cost from any commercial discoveries in the block.

"We expect more cooperation with international counterparts to explore deep water areas in the South China Sea in the future," said Zhang.

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