CNOOC signs PSC with Shell
BY MELANIE CRUTHIRDS, News Editor
HONG KONG -- CNOOC Limited’s parent company, China National Offshore Oil Corporation, has signed a production-sharing contract (PSC) with Shell China Exploration and Production Company for Block 35/10 in Yinggehai Basin in the South China Sea.
The block covers a total area of 3,427 sq km, with a water depth of 80 to 110 m.
According to the terms of the PSC, Shell will conduct a 3D seismic data survey, and may drill exploration wells in the block during the exploration period, in which all expenditures incurred will be borne by Shell. CNOOC has the right to participate with a working interest of up to 51% in any commercial discoveries in the block.