Chevron (NYSE:CVX) and BP (NYSE:BP) have agreed to join together on the bidding of a South China Sea exploration block. Although the financial terms haven't been made public, the deal is waiting for approval by China's Ministry of Commerce.
If the deal is given approval, Chevron will hold a 60 percent stake as well as being the operator. With BP's stake being the other 40 percent. Although if they were to find commercial oil and gas that would give China National Offshore Oil Corporation the right to take 51 percent stake.
Nobody would comment on the deal when spokesmen were contacted. Steve Westwell, BP's Global Chief of Staff said of course the oil spill will have a "profound effect" on the industry. He continued, despite the current situation they are dealing with it should not "stop all further deepwater production." Not to mention the fact that drilling in the Gulf of Mexico has had an impeccable safety record for the past 20 years.
Chevron is also currently bidding on two other blocks in South China.
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