China National Offshore Oil Corporation (CNOOC) announced that it had opened 14 offshore blocks spread over 42,000 sq. kms. to foreign players for joint exploration. Among the 14 blocks, four are located at the western part of South China Sea and the remaining 9 were situated in the eastern part of South China Sea. CNOOC will hold a 51 per cent stake in any production sharing agreement.

Reports noted that the policy of joint development of offshore blocks is in line with the Chinese strategy to shelve ongoing dispute for mutual benefits in other areas. The policy is also meant to reduce Chinese threat perception among its neighbors and create joint stakes so that conflictual behaviour can be avoided1.

• 1. “China offers 14 offshore blocks,” Asia Energy, April 17, 2009, at http://asianenergy.blogspot.com/2009/04/china-offers-17-offshore-blocks....