CNOOC secures three new blocks in the South China Sea

CNOOC Limited announced today that its parent company, China National Offshore Oil Corporation, has signed three production-sharing contracts with KUFPEC Inc. for Blocks 52/22, 52/26 and 63/13 in the South China Sea.

The three blocks are located in the Yinggehai Basin of the South China Sea. Block 52/22 covers a total area of 1896 km², and has a water depth of 60-300 m; Block 52/26 covers a total area of 1783 km², and has a water depth of 80-160 m; Block 63/13 covers a total area of 698 km², and has a water depth of 80-140 m.

According to the terms of the production-sharing contracts, CNOOC shall act as the operator of the three blocks mentioned above. 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 contracts, CNOOC will assign all of its rights and obligations under such contracts, except for those relating to CNOOC’s administrative functions, to CNOOC China Limited, a subsidiary of CNOOC Limited.

Adapted from press release by Joe Green

Read the article online at: https://www.oilfieldtechnology.com/exploration/10122014/cnooc-secures-three-new-blocks-south-china-sea-1972/