Beijing: China National Offshore Oil Corporation (CNOOC) has signed a production sharing contract (PSC) with Shell China Exploration and Production Company Limited for Block 35/10 in Yinggehai Basin in the South China Sea.
Block 35/10 covers a total area of 3,427 square kilometers with water depth of 80-110 meters.
Shell will conduct a 3D seismic data survey and may drill exploration wells in the block during the exploration period, in which all expenditure incurred will be borne by Shell. CNOOC has the right to participate in up to 51% working interest in any commercial discoveries in the block.
Last month, CNOOC inked the same type of contract with BP to jointly develop the deepwater block 54/11 in the South China Sea. [02/08/13]
