CNOOC signs two South China Sea PSCs with SK Innovation

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.

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.

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