CNOOC Limited’s parent company, China National Offshore Oil Corporation (CNOOC), has signed two production sharing contracts (PSCs) with Husky Oil Operations 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.
The Block 22/11 covers a total area of 1,663 square kilometers with a water depth of 40-80 meters and the Block 23/07 covers a total area of 1,210 square kilometers with a water depth of 20-40 meters.
CNOOC said on Friday that, according to the terms of the PSCs, Husky will act as the operator during the exploration period and conduct exploration activities in the two blocks, in which all expenditures incurred will be borne by Husky.
Once it enters 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 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.