China's CNOOC signs deals with western oil majors

China stressed its openness for trade on Tuesday as China National Offshore Oil Corp signed nine oil and gas deals with different firms including Royal Dutch Shell.

The agreements cover 64,000 square kilometers in the Pearl River basin, to a depth of up to 3,000 meters.

The firms awarded deals were Royal Dutch Shell, Total SA, Chevron Corp, ConocoPhillips, Equinor ASA, Husky Energy Inc., Kuwait Foreign Petroleum Exploration Co., Roc Oil Co., and SK Innovation Co.

“The agreements will facilitate the establishment of a long term and stable cooperation and share the development opportunities to a certain extent in the Strategic Cooperation Areas, creating conditions for the final signing of contracts,” CNOOC’s listed unit said in a statement.

Chairman Yang Hua said the company’s aim is to boost output to 2m of daily barrels of oil by 2025, up from the 1.3m in 2017. He also said the government would be studying how to support exploration and development of offshore oil and gas with the sector opening “to international players going forward.”

Chinese leader Xi Jinping added in his speech that “no-one is in a position to dictate to the Chinese people what should or should not be done” and China would pave its own way.

“China’s development does not pose a threat to any country,” he said. “No matter how far China develops, it will never seek hegemony.”