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CNOOC and KPC collaborate at Yinggehai Basin fields in the South China Sea

10th December 2014

CNOOC has signed three production sharing contracts (PSCs) with KUFPEC (Kuwait Foreign Petroleum Company), a subsidiary of KPC (Kuwait Petroleum Corporation) for Blocks 52/22, 52/26 and 63/13 in the South China Sea

CNOOC and KPC collaborate at Yinggehai Basin fields in the South China Sea
Both parties will conduct 3D seismic data surveys and will drill exploration wells

The three blocks are located in the Yinggehai Basin of the South China Sea.

According to the terms of the PSCs, CNOOC shall act as the operator of the three blocks.

Expenditures incurred during the exploration period will be borne by CNOOC and KUFPEC in a proportion of 20 per cent and 80 per cent of participating interest, respectively.

Both parties will conduct 3D seismic data surveys and will drill exploration wells.

Once entering the development phase, CNOOC has the right to participate in up to 70 per cent of the working interest in any commercial discoveries in the blocks.

After signing the 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.

Block 52/22 covers a total area of 1,896 square kilometres, and has a water depth of 60-300 metres. Block 52/26 covers a total area of 1,783 square kilometres, and has a water depth of 80-160 metres. Block 63/13 covers a total area of 698 square kilometres, and has a water depth of 80-140 metres.

 

 

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