British BP re-Zhun Nanhai Exploration Oil and Gas

British Petroleum (BP) has announced that the 43/11 deepwater blocks in the South China Sea, developed by the joint exploration of the BP, Anadarko and CNOOC exploration and development agreement last week, has received approval from the Chinese Ministry of Commerce. This is the company again in the South China Sea region oil and gas exploration block interests. Analysts believe that the move is BP is seeking to expand in China, an important measure of upstream oil exploration and development is also an important step in the strategy of CNOOC deep water.

It is understood that, in the 43/11 deepwater blocks in the South China Sea, CNOOC play operator, with approximately 40% interest in BP during the exploration phase, development phase has a 20% interest. 43/11 deepwater blocks in the South China Sea has done seismic testing, is planning to fight an appraisal well in exploration.

The South China Sea 43/11 deepwater blocks on behalf of BP’s interest in deep-sea oil and gas resources. President of BP China, said Chen Liming, BP China hopes to continue to explore opportunities for cooperation in the deep field with Chinese enterprises, it will be an important component of BP China’s future business.

Adviser in the energy industry researcher Song Zhichen

cast, this is not the BP for the first time into the South China Sea exploration for oil. BP in Chinese business strategy is to deepen the cooperative relations of the oil and gas exploration and exploitation, and the middle and lower reaches of the refining industry and end-market expansion, the project will be led BP to enhance the scale in the Chinese oil and gas exploration and production market.

As early as in 2010 CNOOC and Chevron company, BP China and Devon Energy 3 deepwater blocks in the South China Sea 42/05 64/18 53/30, signed an oil contract to modify the agreement, and the Chinese Government approval.

Chen Liming, South China Sea oil and gas development is highly competitive, because almost all of the multinational oil companies are interested in the Chinese government in the oil and gas resource development, strict management, and therefore some challenges for access to resources for BP. However, deep-sea oil and gas development, the demand for funds, the availability of funds and technical advantages of multinational companies also have a great opportunity.

At present, have been involved in China’s offshore oil exploration and mining operations of multinational oil giants including ConocoPhillips, Kerr-McGee Oil, Roc Oil, CACT Operators Group, and Husky Oil.

“This is an important strategic step in CNOOC deep water.” Song Zhichen analysis, CNOOC’s “deep water” 2012, CNOOC is to transfer its development focus from shallow water to deep water, but CNOOC’s own deep-water exploration and exploitation of technology still need to further improve and perfect the joint exploration of the joint BP and other companies can not only reduce risk, but also be able to sharpen their technical level.

(Financialinfo.co, Edited by Topco)