CNOOC Ltd.’s (SEHK: 00883, NYSE: CEO, TSX: CNU) parent company, China National Offshore Oil Corp. (CNOOC), has signed a production sharing contract (PSC) with Husky Oil Operations (China) Ltd. for Block 15/33 in the South China Sea.
Block 15/33 is located in the Pearl River Mouth Basin of the South China Sea. The block covers a total area of 155 square kilometers with a water depth of 80–100 meters, the block is one of the blocks CNOOC offered for foreign cooperation in 2014.
According to the terms of the PSC, Husky will act as the operator during the exploration period and conduct exploration activities in the block, in which all expenditures incurred will be borne by Husky. Once entering the development phase, CNOOC has the right to participate in up to 51% of the working interest in any commercial discoveries of the block.
After signing the PSC, except for those relating to CNOOC’s administrative functions, CNOOC will assign all of its rights and obligations under PSC to CNOOC China Ltd., a subsidiary of CNOOC Ltd.