CNOOC, BP sign PSC in South China Sea

China’s CNOOC Group has signed a production-sharing contract with BP PLC to jointly explore and develop deepwater Block 54/11 in Pearl River Mouth basin in eastern South China Sea.

Block 54/11 covers 4,586 sq km in water ranging 370 m to 2,300 m deep.

The PSC calls for BP to pay all expenses during the exploration period. Other financial terms were not immediately available.

BP already has minority stakes in two deepwater blocks in the South China Sea, both in the exploration stage. BP’s existing deepwater interests are in Blocks 43/11 and 42/05.

CNOOC has the right to participate in up to 51% working interest in any commercial discoveries in the block. CNOOC will act as the operator.

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