Under the terms of the agreement, CNOOC and PNOC EC would set up a Joint Working Committee whose purpose would be to select possible areas in the South China Sea suitable for exploration and development. Furthermore, the two companies would data share, which would facilitate the chance to review, assess and evaluate all available relevant geological, geophysical and other technical data and information.

The Chairman and CEO of CNOOC Limited, Fu Chengyu is ecstatic over the deal. "We are very much delighted to work together with PNOC EC, both companies will benefit from the signing of the LOI aimed at advancing the exploitation of oil and gas in the to-be agreed areas in the South China Sea."