Petronas seals China pact

Petronas seals China pact

KUALA LUMPUR (AFP): Malaysia's national oil company Petroliam Nasional Bhd (Petronas) Saturday sealed its third oil exploration contract in China.

Petronas unit, Petronas Carigali Overseas Sdn Bhd (PCOSB) signed a pact with China National Offshore Oil Corp (CNOOC) and Chevron Overseas Petroleum Ltd to jointly undertake oil and gas exploration.

PCOSB and Chevron, as contractors, would hold 40 percent and 60 percent equity respectively in the venture, Petronas said in a statement.

But in the event of discovery, CNOOC has the right to acquire up to 51 percent interest with the remaining 49 percent to be shared proportionately by PCOSB and Chevron.

The block, located in offshore Liaodong Bay Basin in the Gulf of Bohai, covers an area of about 5,250 square kilometers.

Under the contract terms, the three parties are required to acquire "three- dimensional seismic data and drill exploration wells within the first three years", Petronas said.