China: Shell signs to explore Yinggehai basin block

Shell China Exploration & Production Co. Ltd. has signed a production-sharing contract with China National Offshore Oil Corp. for Block 35/10 in the Yinggehai basin in the western South China Sea.

The block covers 3,427 sq km in 80-110 m of water. Shell will shoot 3D seismic and may drill exploratory wells and will bear all expenses. CNOOC has the right to participate in up to 51% working interest in any commercial discovery.

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