BP and Chinese offshore oil producer CNOOC yesterday signed a production sharing agreement for a deepwater block in the South China Sea, building on its presence in the region.

The block 54/11 covers 4,586 square kilometers in water depths from 370 meters to 2,300 meters. It's in the Pearl River Mouth Basin and close to the British oil major's existing deepwater interests in two blocks there. CNOOC said it has the right to participate in up to 51 percent working interest in any commercial discoveries in the new block and it will be its operator. The contract is the 200th production sharing contract between CNOOC and foreign partners.