CNOOC signs PSC with Smart Oil
China National Offshore Oil Corp. has signed a production-sharing contract with Smart Oil Investment Ltd. for block 09/17 in Bohai Bay.
HONG KONG – China National Offshore Oil Corp. (CNOOC) has signed a production-sharing contract (PSC) with Smart Oil Investment Ltd. for block 09/17 in Bohai Bay.
The block is in the Qikou sag, Bohai Bay basin offshore China. It covers a total area of 509.3 sq km (196.6 sq mi) in water depths ranging from 5-10 m (16-33 ft).
According to the terms of the PSC,Smart Oil will act as the operator during the exploration period and conduct exploration activities. For the development phase, CNOOC has the right to participate in up to 51% of the participating interest in any commercial discoveries.
Except for those relating to CNOOC’s administrative functions, CNOOC will assign all its rights and obligations under the PSC to CNOOC China Ltd., a subsidiary of CNOOC Ltd.