Canadian firm Husky Energy has inked a production sharing deal for a block off the coast of China.
Calgary-based Husky will drill two exploration wells on block 16/25 in the Pearl River Mouth basin, about 150 kilometres south-east of Hong Kong, in 2018.
It also plans to drill two more wells at the nearby 15/33 asset.
Husky operates and holds 100% of both blocks.
If it discovers hydrocarbons, Chinese energy company CNOOC can take on an interest of up to 51%.