Cnooc, Smart Oil Sign PSC
Chinese state Cnooc has signed a production sharing contract (PSC) with Smart Oil Investment for Bohai 09/17 block in Bohai Bay Basin, the company said April 12.
Bohai 09/17 block covers a total area of 509.3 km2 with a water depth of 5-10 metres.
According to the terms of the PSC, Smart Oil shall act as the operator during the exploration period and will bear all the cost, Cnooc said. 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 Bohai 09/17 block.
After signing the above-mentioned PSC, except for those relating to Cnooc's administrative functions, all rights and obligations under the PSC will be transferred to Cnooc China, a subsidiary of Cnooc.