By OGJ editors
HOUSTON, Oct. 19 -- China National Offshore Oil Corp. (CNOOC) has signed a production-sharing contract (PSC) for Block 03/27 and a geophysical agreement for Block 28/20, both in the Pearl River Mouth basin, with privately held Texas American Resources Co. (TARC), Austin.
Block 03/27, covering 10,569 sq km, is in 50-100 m of water in the eastern South China Sea.
Under terms of the PSC, TARC is committed to drill wildcats during the exploration period and fund 100% of the exploration. CNOOC could opt to back in with up to a 51% working interest at no cost in any commercial discoveries in the block.
Under terms of the geophysical agreement for Block 28/20, TARC will acquire 3D seismic data on the 7,625-sq-km area. It has the option to sign a PSC for the block at the expiration of this agreement with CNOOC.
