Primeline Energy announced that it has reached an agreement with China National Offshore Oil Corporation (CNOOC) to extend the exploration period for Block 33/07 in the East China Sea to facilitate Primeline’s exploration drilling programme.
The two companies will extend phase one of the exploration period from three years to 3.5 years so that it now expires on April 30, 2016. The original contract had a seven-year exploration period split into three phases of three, two and two years. The amendment agreement extends the exploration period to 7.5 years with the first phase extended to 3.5 years, with the other phases remaining at two years each.
The extension of the exploration period was agreed in order to provide sufficient time to complete the current exploration well and review the results and then complete a second exploration well before the end of the first exploration phase in compliance with the agreed work plan.
COSL is the drilling service provider of the project.