An Ocean Thermal Energy Conversion (OTEC) system using a new cycle with absorption and extraction processes is proposed. In this paper, parametric performance analysis of OTEC system using the new cycle is carried out. The thermal efficiency of the OTEC system using the new cycle is compared with that of the Kalina cycle. Thermodynamic physical properties of ammonia/water mixtures are calculated using an improved version of the modified Benedict-Webb-Rubin (BWR) equation of state.