China National Offshore Oil Corp. Ltd. signed two production-sharing contracts with SK Innovation Co. Ltd., Seoul, for two blocks in the Pearl River Mouth basin of the South China Sea.
The blocks lie in 50-100 m of water. Block 04/20 covers 5,138 sq km and Block 17/03 covers 7,686 sq km.
The companies will conduct 2D seismic surveys and drill exploration wells, they said.
Operator SK will cover 80% of the exploration costs. In a development phase, CNOOC has the right to as much as 60% working interest in any commercial discovery.