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Collaboration: CNOOC and Newfield will co-operate in the South China Sea (above)

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CNOOC and Newfield to team up

China National Offshore Oil Corporation (CNOOC), and Houston-based Newfield Exploration are expected to enter into a new production sharing contract covering a block in the South China Sea, media reports said today.

The block covers 5424 square kilometres with water depth ranging from 10 metres to 60 metres, the official Shanghai Securities News reported, citing sources.

Newfield last year set up an office in Beijing to better oversee its investment in China's offshore oil projects.

In December 2005, CNOOC and Newfield entered into a PSC for two blocks in the mouth of South China’s Pearl River Delta.

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