CNOOC, Husky sign PSCs for exploration blocks in the South China Sea
HONG KONG -- CNOOC Limited has announced that its parent company, China National Offshore Oil Corporation (CNOOC), has signed two production sharing contracts (PSCs) with Husky Oil Operations (China) Limited for Block 22/11 and 23/07, in the South China Sea. Block 22/11 and 23/07 are located in the Beibu Gulf of the South China Sea.
Block 22/11 covers a total area of 1,663 km2, with a water depth of 40-80 m and Block 23/07 covers a total area of 1,210 km2, with a water depth of 20-40 m.
According to the terms of the PSCs, Husky shall act as the operator during the exploration period and conduct exploration activities in the two blocks mentioned above, in which all expenditures incurred will be borne by Husky. Once entering the development phase, CNOOC has the right to participate in up to 51% of the participating interest in any commercial discoveries of the blocks. After signing the above-mentioned PSCs, except for those relating to CNOOC’s administrative functions, CNOOC will assign all of its rights and obligations under PSCs to CNOOC China Limited, a subsidiary of CNOOC Limited.
