China National Offshore Oil Corporation, the parent company of China's largest offshore oil and gas developer CNOOC Ltd. (CEO.NYSE; 00883.HK), announced that it has signed a production sharing contract (PSC) with Husky Oil Corporation Limited (Husky) on Thursday.
Both sides would jointly develop offshore block 15/33 located in Pearl River Mouth Basin of the South China Sea. The block has an area of 155 square km with water depth ranging from 80 meters to 100 meters.
Husky would act as operator during the exploration period and bear all costs in this regard. Once entering the production phase, CNOOC would have the right to participate in up to 51 percent working interests in any commercial discoveries.
Except for administrative functions, CNOOC would transfer its all rights and obligations under the PSC to CNOOC China Ltd., a subsidiary of CNOOC Ltd.
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