Italy’s Eni signed a new Production Sharing Contract with China’s CNOOC for the exploration of one block offshore Hainan island, in the South China Sea.
“This new PSC confirms the interest of Eni to continue and consolidate its presence in China, particularly in the South China Sea, where the company cooperates with the Chinese NOCs since middle 80’s, both for exploration and production,” reads a statement by Eni.
According to the terms of the contract, Eni will conduct 3D seismic survey and drill exploration well in Block 50/34 during the 6.5 years exploration period. All expenditures incurred during the exploration period will be borne by Eni.
CNOOC Limited has the right to participate in up to 51% working interest in any commercial discoveries in the block.