China National Offshore Oil (CNOOC) signed a production sharing contract (PSC) with Husky Oil Operations (China) for Block 15/33 in the South China Sea.
Block 15/33 is located in the Pearl River Mouth Basin of the South China Sea. The block covers a total area of 155sq km with a water depth of 80-100m, the block is one of the blocks CNOOC offered for foreign cooperation in 2014.
According to the terms of the PSC, Husky will be the operator during the exploration period and conduct exploration activities in the block 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 working 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.