China National Offshore Oil Company Limited (CNOOC Ltd.) announced Wednesday that its parent company, China National Offshore Oil Corporation (CNOOC), has signed a production sharing contract (PSC) with Eni China B.V. (Eni) for a deepwater block in the South China Sea.
Block 30/27, located 400 kilometers off the coast of Hong Kong with a total area of 5,130 square kilometers, is one of the blocks CNOOC first offered for foreign cooperation in 2011.
According to the terms of the contract, Eni will conduct 3D seismic surveying and drill one exploration well in Block 30/27. All expenditures incurred during the exploration period will be borne by Eni. CNOOC Ltd. has the right to participate in up to 51-percent working interest in any commercial discoveries in the block.
Eni also has equity interest in blocks 16/08 and 16/19 in the South China Sea and is the operator of Block 28/20.
Focusing on oil and gas exploration and production, CNOOC Ltd. is the listed company of CNOOC, China’s largest offshore oil company.