CNOOC, Roc Oil Sign South China Sea PSCs

CNOOC Limited on Wednesday announced that its parent company, China National Offshore Oil Corporation (CNOOC), has signed two production sharing contracts (PSCs) with Roc Oil (China) Company (ROC) for Blocks 16/07 and 03/33 in the South China Sea.

The two blocks mentioned above are located in the Pearl River Mouth Basin in the South China Sea. Block 16/07 covers a total area of 2,743 square kilometers and has a water depth of approximately 100 meters. Block 03/33 covers a total area of 2,367 square kilometers and has a water depth of 65-145 meters.

According to the terms of the PSCs, ROC shall act as the operator during the exploration period and conduct exploration activities in the two blocks mentioned above, in which all expenditures incurred will be borne by ROC. Once entering the development phase, CNOOC has the right to participate in up to 51 percent of the working interest in any commercial discoveries of the blocks.

After signing the above-mentioned PSCs, CNOOC will assign all of its rights and obligations under such contracts, except for those relating to CNOOC's administrative functions to CNOOC China Limited, a subsidiary of CNOOC Limited, the company statement stated.