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.

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).