By OGJ editors
HOUSTON, June 7 -- CNOOC Ltd. signed two production-sharing contracts with BG Group for deepwater Blocks 64/11 and 53/16 in the western South China Sea. The agreements remain subject to final government approval.
Terms call for BG to be the operator and to hold 100% interest in the blocks during exploration. CNOOC Ltd. has an option for up to 51% interest in any commercial discoveries.
BG plans to acquire 2D and 3D seismic surveys on the blocks and to drill one exploration well in each. Block 64/11 is 7,546 sq km in 180-1,500 m of water. Block 53/16 is 8,671 sq km in 200-2,100 m of water. Both are in the Qiong Dong Nan basin southeast of Hainan Island.
In addition, BG agreed to gather seismic data on Block 41/06. BG has an exclusive option to enter into a PSC for that block, subject to final government approval.
