CNC has opened new deepwater acreage to foreign cooperation, creating a rare opportunity for foreign players to enter the Chinese upstream. The move also highlights CNC's desire to unlock the vast potential it holds as a result of its offshore monopoly.

A vast swath of the South China Sea, including largely unexplored deepwater acreage, has been offered to foreign investors by China's state-run China National Offshore Oil Corporation . BMI has highlighted CNC's efforts to expand beyond China's shallow-water operations into more complex deepwater projects as a major investment opportunity for foreign companies looking for a foothold in the Chinese market. CNC's decision to increase the amount of deepwater acreage up for grabs confirms this view.

CNC announced on May 26 that it had put 19 blocks spanning 52,600sq km up for cooperation with foreign oil companies. Many of the blocks are in shallow waters and have already seen some exploration activity. Block 27/12 in the Pearl River Mouth Basin, where 14 wells have been drilled and extensive 2D seismic surveying has been carried out, is the most explored of the blocks put on offer.

http://www.oilandgasinsight.com/file/102368/cnc-deepwater-sale-offers-foothold-in-high-potential-acreage.html