CNOOC Ltd. (NYSE: CEO, SEHK: 00883, TSX: CNU) reports that its parent company, China National Offshore Oil Corp. (CNOOC) has signed a production sharing contract (PSC) with Eni China BV (Eni) for Block 50/34 in the South China Sea.
Block 50/34, located in the Qiongdongnan Basin offshore Hainan Island with a total area of 2,000 square kilometers, is one of the blocks that CNOOC offered for foreign cooperation in 2012.
According to the terms of the contract, Eni will conduct a 3D seismic survey and will drill an exploration well in Block 50/34 during the 6.5 years of the exploration period. All expenditures incurred during the exploration period will be borne by Eni. CNOOC Ltd. has the right to participate in up to a 51% working interest in any commercial discoveries in the block.