CNOOC signs PSC with Smart Oil
HONG KONG -- CNOOC Limited has announced that its parent company, China National Offshore Oil Corporation (CNOOC), has signed a production sharing contract (PSC) with Smart Oil Investment Ltd. for Block 05/31 in Bohai.
Block 05/31 is located in the junction of Qikou Sag and Nanpu Sag of the West of Bohai. It covers a total area of 270 sq km with water depth ranging from 5 to 15 m.
According to the terms of the PSC, Smart Oil will conduct a 3D seismic data survey and drill exploration wells in the block during the exploration period, in which all expenditures incurred will be borne by Smart Oil. CNOOC has the right to participate in up to 51% working interest in any commercial discoveries in the block.