Empyrean signs PSC with CNOOC for block in South China Sea

Empyrean Energy PLC will conduct exploration activities on Block 29/11 in the Pearl River Mouth basin of the South China Sea as detailed in a production-sharing contract with China National Offshore Oil Corp.

Empyrean will act as operator during the exploration period, bearing all expenditures incurred. Once the development phase starts up, CNOOC has the right to participate in as much as 51% of the participating interest in any commercial discoveries on the block, which covers 1,808 sq km in 300-600 m of water.

After signing the PSC, except for those relating to CNOOC’s administrative functions, CNOOC will assign all of its rights and obligations under the PSC to CNOOC subsidiary CNOOC China Ltd.