CNOOC signs three PSCs with KUFPEC

CNOOC signs three PSCs with KUFPEC

HONG KONG -- CNOOC has signed three production sharing contracts (PSCs) with KUFPEC for Blocks 52/22, 52/26 and 63/13 located in the Yinggehai basin of the South China Sea.

Block 52/22 covers a total area of 1,896 sq km, and has a water depth of 60 m to 300 m; Block 52/26 covers a total area of 1,783 sq km, and has a water depth of 80 m to160 m; Block 63/13 covers a total area of 698 sq km, and has a water depth of 80 m to140 m.

According to the terms of the PSCs, CNOOC shall act as the operator of these three blocks. Expenditures incurred during the exploration period will be borne by CNOOC and KUFPEC in a proportion of 20% and 80% of participating interest, respectively.

Both parties will conduct 3D seismic data surveys and will drill exploration wells. Once entering the development phase, CNOOC has the right to participate in up to 70% of the working interest in any commercial discoveries in the blocks.

After signing the above mentioned PSCs, CNOOC will assign all of its rights and obligations under such contracts, except for those relating to CNOOC’s administrative functions, to CNOOC China, a subsidiary of CNOOC.