BP gets OK for deepwater gas exploration in South China Sea
HOUSTON -- BP has obtained approval from the Ministry of Commerce to explore in the South China Sea in what will be the company's second deepwater project in China.
BP will have a roughly 40 percent stake in the block during the exploration period and a 20 percent share when the project has moved into production.
BP's participation in block 43/11 will diminish the size of a share held in the project by Anadarko Petroleum Corp, a US energy company, which previously had a 50 percent stake in the block under a contract with CNOOC. The planned exploration will mark BP's second deepwater project in China. In September 2010, it bought a 41 percent stake in another block in the South China Sea.
BP said such deepwater work is among the four areas of opportunity the company wants to exploit in conjunction with its Chinese counterparts in China and overseas markets. The other three pertain to natural gas - both conventional and unconventional types - integrated refining and chemicals and high-end lubricants.
BP also said it plans to spend about $630 million on the third phase of a project to make purified terephthalic acid - which are used in many plastics - at its BP Zhuhai Chemical Company Ltd plant in Guangdong.