On July 10, Sinopec and CNOOC (China) Limited, a subsidiary of CNOOC signed a cooperation framework agreement concerning 19 prospecting rights and around 26 900 square kilometres altogether of Bohai Bay, Beibu Gulf, South Yellow Sea and North Jiangsu basin.

Under the framework, the two sides have signed three joint study agreements, namely, “Joint Study Agreement on Bohai Basin”, “Joint Study Agreement on North Jiangsu Basin and South Yellow Sea Basin” and “Joint Study Agreement on Beibu Gulf Basin.” This marks a new chapter has been opened in the cooperation between the two sides in the field of oil and gas exploration and development after the joint exploration and development of oil and gas in the East China Sea.

According to the two sides, China's offshore oil and gas resources are rich, but the exploration is limited and hence, it is the key area of oil and gas exploration and development.  The cooperation framework agreement will be implemented in three years through joint study, joint exploration and facility sharing in multiple sea areas. Both parties will share data and carry out innovative joint studies in the Yellow River Mouth Sag, the Qingdong Sag and the Bodong Sag in the Bohai basin, as well as southwestern Weizhou and Xuwen areas of Beibu Gulf basin, the North Jiangsu basin and the blocks in eastern South Yellow Sea basin. 

The cooperation is an important way for Sinopec and CNOOC to promote the sustainable and healthy development of oil and gas upstream industries and has vital practical significance for accelerating the increase of offshore oil and gas production and storage.