China's largest offshore oil company, China National Offshore Oil Corp, is in talks with Norway's StatoilHydro to buy an interest in oil field leases in U.S. waters in the Gulf of Mexico, sources reported.

Kai Nielsen, spokesman for the Norwegian firm, said that the firm will probably sell a minority stake did not disclose a price. StatoilHydro currently owns over 400 oil fields in the area.

Xiao Zongwei, spokesman for CNOOC, declined to comment.

If CNOOC signs a deal with StatoilHydro, it will be the first Chinese firm to develop an oil field in U.S. waters in the Gulf of Mexico. The arrangement could rekindle China's enthusiasm for deals with U.S. oil companies, which was dampened in 2005 when CNOOC's offer to buy California-based Unocal Corp for U$18.5 billion was blocked.

According to a report released on Sep. 29, CNOOC is considering buying an oil field that is located in Nigeria and has reserves of 6 billion barrels for between US$30 billion and US$50 billion. On Oct. 12, CNOOC teamed up with Exxon Mobil Corp to bid for a stake in the Jubilee oil field in Ghana for around US$4 billion.