Top Biz News

Foreign firms eye joint oil projects

By Wang Yu (China Daily)
Updated: 2007-03-10 09:56

According to Zhao Liguo, a legal issues expert with CNOOC, there are already several foreign oil firms contacting CNOOC to request detailed documents for possible joint E&P.

"If they are interested, we will begin further bilateral negotiations for possible cooperation," Zhao said.

"If there are multiple bidders for one project, then a competition mechanism will determine which company gets the project."

The 22 blocks include three blocks in the South Yellow Sea Basin, four blocks in the East China Sea and 15 blocks in the South China Sea, according to CNOOC.

CNOOC Spokesperson Liu Junshan said that developing the 22 blocks will require fairly complicated technology and high-level expertise. "Therefore, it is necessary to bring in international experience," Liu Junshan said.

Liu Gu, a veteran analyst withShanghai-headquartered Guotai Jun'an Securities Co, pointed out that should both global crude prices and domestic demand increase, traditionally difficult areas will need to be drilled to meet rising demand.

"As energy demand and prices increase, it becomes profitable to drill difficult areas despite the various drilling difficulties," Liu Gu said.