CNOOC has the right to take interests of up to 51 pct
CNOOC Ltd said its parent, China National Offshore Oil Corporation (CNOOC), has signed a new production-sharing contract with Hutchison Whampoa Ltd unit Husky Oil China Ltd in connection with the exploration of deepwater blocks in the South China Sea.
Block 29/06 in the eastern South China Sea covers a total area of 9,265 square kilometers in the ZhuIISag of Pearl River Mouth Basin and has a water depth ranging from 500 to 1,500 meters. Under the contract, Husky is committed to acquire 3-D seismic data and drill exploration wells in the block during the first phase of the project.
Blocks 35/18 and 50/14 in the western South China Sea are located on the east slope of Yinggehai Basin, covering 4,496 and 3,137 square kilometers respectively, and have water depths ranging from 20 to 95 meters.
During the exploration phase, Husky will drill wildcat wells in both blocks and conduct a 3-D seismic survey in block 35/18.
CNOOC has the right to take interests of up to 51 pct in any commercial discoveries in the blocks.
CNOOC has signed 10 PSCs with Husky, three of which are deepwater contracts.