HONG KONG –CNOOC (NYSE:CEO) has signed a production-sharing contract with Shell China Exploration and Production for block 35/10 in Yinggehai basin, South China Sea.
At its expense, Shell will conduct a 3D seismic survey and may drill exploration wells during the exploration period. CNOOC has the right to as much as 51% working interest in the event of commercial discovery.
The block spans 3,427 sq km (1,323 sq mi) with water depths of 80-110 m (262-361 ft).
Shell and CNOOCpreviously signed agreements to explore blocks 62/02 and 62/17 in Yinggehai basin.