China National Offshore Oil Corp. has signed production sharing contracts with Shell China Exploration & Production Co. Ltd. for the 62/02 and 62/17 blocks in the Yinggehai basin south and west of Hainan Island.
The contracts call for Shell to shoot 3D seismic and drill exploratory wells in the two blocks during the exploration period. Shell will bear all expenditures, and CNOOC has the right to participate in up to 51% working interest in any commercial discovery.
