Husky, CNOOC sign PSC for Pearl River Mouth basin block

Husky Energy Inc. says an affiliate plans to drill two wells “in the 2017 timeframe” on Block 15/33 in the Pearl River Mouth basin in the South China Sea.
Dec. 3, 2015

Husky Energy Inc. says an affiliate plans to drill two wells “in the 2017 timeframe” on Block 15/33 in the Pearl River Mouth basin in the South China Sea.

Husky Oil Operations (China) Ltd. and China National Offshore Oil Corp. signed a production-sharing contract for the block, about 140 km southeast of Hong Kong (OGJ Online, Nov. 24, 2014). The block covers 155 sq km in 80-100 m of water. CNOOC said it’s one of the blocks offered for “foreign cooperation” in 2014.

Husky is operator during the exploration phase, with 100% working interest. If there’s a commercial discovery, CNOOC China Ltd. may assume a working interest of up to 51% during the development and production phase. Exploration cost recovery from production would be allocated to Husky (OGJ Online, Dec. 15, 2014).

About the Author

OGJ editors

Sign up for Oil & Gas Journal Newsletters