Offshore staff
LONDON – Wood Mackenzie has issued more details on CNOOC’s announcement that it has signed strategic cooperation agreements with nine international oil companies.
According to research director Andrew Harwood, these cover two offshore areas in thePearl River Mouth basin of the South China Sea, considered prospective for ultra-deepwater, high-pressure/high-temperature, or low porosity/low permeability reservoirs.
The IOCs - Chevron, ConocoPhillips, Equinor, Husky, KUFPEC, Roc Oil, Shell, SK Innovation, and Total - all have existing E&P operations in the country, and the agreements underline their commitment to involvement in China’s energy sector, Harwood said.
Should the agreements be converted to full exploration contracts, CNOOC will retain operatorship. Wood Mackenzie expects the company to increase its domestic exploration expenditure and to become more active in exploration in 2019.
“The Pearl River Mouth basin is believed to hold significant deepwater gas and shallow-water oil potential,” Harwood said, adding that the bulk of future exploration investment is likely to target this area.
“CNOOC has set its sights on raising gas reserves by 50% by 2025 and developing further its deepwater expertise. These agreements will help the company achieve its targets and hone its technical skills set.”
12/19/2018
