CPC & CNOOC Begin Drilling in Taiwan Straits

CNOOC and Chinese Petroleum Corp. have begun drilling their first joint venture exploration well in the South China Sea. "The drilling has started...Weather conditions out there are stable now," he said.

In May last year, CNOOC and CPC signed a US$25 million agreement to explore for oil and gas at the Tainan Block in the Taiwan Straits. The agreement also calls for a 2D seismic survey to be carried out. Under the agreement, the companies will split the proceeds equally.

The companies suspended joint offshore oil exploration at the Tainan block following the SARS outbreak in May this year.