MILAN, Italy –Eni (MI:ENI, NYSE:E) and China National Offshore Oil Corp. have signed a Production Sharing Contract (PSC) for the exploration of block 30/27, 400 km (250 mi) off the coast of Hong Kong. The block covers 5,130 sq km (1,981 sq mi) in deepwater South China Sea.
The contract calls for the acquisition of a 3D seismic survey of 2,000 sq km (772 sq mi), and the drilling of one well to be performed during the first exploration period.
Eni will be the operator of the project, with a 100% interest. In the case of a discovery, CNOOC has a back-in right of up to 51%.