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China National Offshore Oil Company (CNOOC) Limited said its parent company CNOOC signed production sharing contracts with Kuwaiti company KUFPEC for three blocks in the South China Sea on Wednesday.

CNOOC will act as the operator of the three blocks. Expenditures during the exploration period will be borne by CNOOC and KUFPEC in a proportion of 20 percent to 80 percent, according to the company statement.

Both companies will conduct 3D seismic data surveys and drill exploration wells.

The three blocks are all located in the Yinggehai Basin of the South China Sea.