LONDON -- China’s Ministry of Commerce has ratified the Supplemental Development Agreement (SDA) for the LS 36-1 gas field in the South China Sea.
The agreement confirms that CNOOC exercises its rights under the petroleum contract relating to block 25/34 to take a 51% interest in LS 36-1, and act as operator through its subsidiary CNOOC China Limited Lishui Operating Co.
Primeline Energy Holdings, Primeline Petroleum Corp., and CNOOC signed the SDA on March 17. Also on March 17, the three parties had entered into an agreement relating to implementation of the development, and procurement and cost control principles. Following ratification of the SDA, this agreement is now in effect.
CNOOC as operator will start preparations for the development and with Primeline will submit the Overall Development Programme (ODP) for LS 36-1 for full Chinese government approval.
For the time being, Primeline is continuing post-well evaluation following the completion of the LS 35-3-1 discovery well.
CNOOC cleared to operate LS 36-1
China’s Ministry of Commerce has ratified the Supplemental Development Agreement (SDA) for the LS 36-1 gas field in the South China Sea.