Cnooc, Husky Ink PSCs
China’s Cnooc has signed two production-sharing contracts (PSCs) with Husky Oil Operations for Block 22/11 and 23/07 in the South China Sea, it said May 18.
Blocks 22/11 and 23/07 are in the Beibu Gulf of the South China Sea. Block 22/11 covers a total area of 1,663 km2 with a water depth of 40-80 metres and Block 23/07 covers a total area of 1,210 km2 with a water depth of 20-40 metres.
According to the terms of the PSCs, Husky shall act as the operator during the exploration period and conduct exploration activities in the two blocks, in which all expenditures incurred will be borne by Husky, 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 blocks.
After signing the PSCs, except for those relating to Cnooc’s administrative functions, Cnooc will assign all of its rights and obligations under PSCs to its unit, Cnooc China.