Shell signs upstream deals with CNOOC, CNPC for China, Gabon projects
BY ED BALLARD
LONDON--Royal Dutch Shell announced that it signed two offshore oil and gas Production Sharing Contracts, or PSCs, with the China National Offshore Oil Corporation, or CNOOC, and a PSC amendment with CNPC, the China National Petroleum Corporation, for a new development phase for the Changbei gas field in China.
-Also entered an agreement with CNOOC for its participation in two Shell exploration blocks offshore Gabon, West Africa.
-The two offshore oil and gas PSCs with CNOOC are for blocks 62/02 and 62/17 in the Yinggehai Basin.
-Shell, as operator, will conduct 3D seismic data surveys in the Yinggehai blocks.
-Will cover costs for the acquisition of seismic data and will drill exploration wells during exploration phase.
-Shell will hold a 100% working interest during the exploration phase, that will be reduced to 49% in any eventual development phase, with CNOOC as majority partner.
-In Gabon, CNOOC will acquire a 25% participating interest in offshore exploration blocks BC9 and BCD10.
-CNOOC will reimburse Shell for 25% of certain past exploration costs and carry part of the future exploration costs.
-Shell will remain operator with 75% interest
-Agreement is subject to government approval
-Shell' s "A" Shares at 1008 GMT i[ 19 pence, or 0.9%, at 2,189 pence, valuing the company at GBP141.1 billion.
Dow Jones Newswires