BP signs China exploration deal

China National Offshore Oil Corp (CNOOC) signed its 200th production-sharing contract with a foreign partner on Tuesday, teaming up with BP to drill in the South China Sea. The landmark demonstrates China’s drive to develop its own oil and gas resources at the same time as it buys into developments around the world. CNOOC will be the operator and will own the rights to 51 per cent of any commercial discoveries, but BP will carry the cost of exploration. Financial terms were not disclosed in statements from the firms.