CNOOC Limited's parent company, China National Offshore Oil Corporation (CNOOC), has signed production sharing contract (PSC) with Husky Oil Operations (China) Limited (Husky) for Block 16/25 in the South China Sea.
Block 16/25 is located in the Pearl River Mouth Basin. The block covers a total area of 44 square kilometers with a water depth of 100 meters.
According to the terms of the PSC, Husky shall act as the operator during the exploration period and conduct oil & gas exploration activities in the block mentioned above, 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 participating interest in any commercial discoveries of the block. After signing the above-mentioned PSC, except for those relating to CNOOC's administrative functions, CNOOC will assign all of its rights and obligations under PSC to CNOOC China Limited, a subsidiary of CNOOC Limited.