Arco, Kerr-McGee Sign Pacts With China

Atlantic Richfield Co. and Kerr-McGee Corp. said they signed energy exploration agreements with the Chinese national oil exploration company. Arco said it will work with China National Offshore Oil Corp. to develop three natural gas fields in the South China Sea. Los Angeles-based Arco, which already operates China’s largest offshore natural gas field, will evaluate the prospects of the three new fields, assess recoverable reserves and identify markets for the gas. If the field warrants further development, the two companies will collaborate on it, Arco said in a statement. Separately, Oklahoma City-based Kerr-McGee said it formed an alliance with the Chinese oil company to explore the Gulf of Mexico and will sell the Chinese company 60% stakes in seven zones covering more than 30,000 acres.