CNOOC signs PSC with Husky
China National Offshore Oil Corp. has signed a production-sharing contract with Husky Oil Operations (China) Ltd. for block 16/25 in the South China Sea.
Block 16/25 is located in the Pearl River Mouth basin. The block covers a total area of 44 sq km (17 sq mi) with a water depth of 100 m (328 ft).
According to the terms of the PSC, Husky will act as the operator during the exploration period and conduct exploration activities in the block.
Once entering the development phase, CNOOC has the right to participate in up to 51% of the participating interest in any commercial discoveries of the block. Except for those relating to CNOOC’s administrative functions, CNOOC will assign all of its rights and obligations under the PSC to CNOOC China Ltd., a subsidiary of CNOOC Ltd.