BP (BP.NYSE, BP.LSE) and Chevron (CVX.NYSE) will jointly bid on a deep-water exploration block in the South China Sea pending Ministry of Commerce approval, the Wall Street Journal reported, citing a source familiar with the matter. Oklahoma-based Devon Energy (DVN.NYSE) is said to have selected the companies as preferred buyers for block 42/05, a 7,000-square kilometer exploration block located south of Hong Kong. According to the unnamed source, Chevron will operate the block and hold a 60% stake, with BP holding the remainder. CNOOC (CEO.NYSE, 0883.HK) can take a 51% stake in block 42/05 if BP and Chevron make a commercial oil or natural gas discovery.
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