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China National Offshore Oil Corporation (CNOOC) has signed two production sharing contracts with Chevron China Energy Company for two blocks in the South China Sea, a statement said.

CNOOC Limited, a subsidiary of CNOOC -- the country's largest offshore oil and gas producer, said in the online statement late Wednesday that the two blocks, Block 15/10 and Block 15/28, are located in the Pearl River Mouth Basin in the east part of the South China Sea.

According to the terms of the contracts, Chevron will conduct 3D seismic data surveys in the two blocks during the exploration period, in which all expenditures incurred will be borne by Chevron.

CNOOC is allowed to take up to 51 percent of interest in any commercial discoveries in the blocks, the statement said.

"We are very pleased to become a partner with Chevron again and hope this project achieves commercial discoveries soon to create economic returns for both companies," said Zhu Weilin, executive vice president of CNOOC Limited.