CNOOC links with SK for offshore China blocks
CNOOC has signed two production-sharing contracts (PSCs) with SK Innovation for blocks 04/20 and 17/03 in the South China Sea.
Both are in the Pearl River Mouth basin. Block 04/20 covers 5,138 sq km (1,984 sq mi), in water depths of 50-100 m (164-328 ft). Block 17/03 spans 7,686 sq km (2,967 sq mi) in similar water depths.
The two concessions were included in CNOOC’s Open Blocks in Offshore China Round for 2012.
SK will operate both blocks mentioned above and will bear 80% of the exploration costs. The partners will acquire 2D seismic and drill exploration wells.
On entering the development phase, CNOOC has the right to participate in up to 60% of any commercial discoveries.