CNOOC has signed a production sharing contract (PSC) with South Korea's SK Innovation for Block 17/08 in the South China Sea.
Block 17/08 is in the Pearl River Mouth basin, covering a total area of 466sq km with a water depth of 100-130m.
According to the terms of the PSC, SK will act as the operator during the exploration period and conduct exploration activities in the block in which all expenditures incurred will be borne by SK.
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 block.
“After signing the above-mentioned PSC, except for those relating to CNOOC’s administrative functions, CNOOC will assign all of its rights and obligations under PSC to CNOOC China, a subsidiary of CNOOC,” the firm said in a statement.
