China National Offshore Oil Corporation (CNOOC) has signed a production sharing contract (PSC) with Australian oil and gas company Empyrean Energy for Block 29/11 located in the South China Sea.
Image: CNOOC headquarters in Beijing. Photo: courtesy of Daniel Case/Wikipedia.org.
Block 29/11 is located in Pearl River Mouth Basin of the South China Sea. The Block covers a total area of 1808 square kilometers with a water depth of 300-600 meters.
According to the terms of the PSC, Empyrean shall act as the operator during the exploration period and conduct exploration activities in the block mentioned above, in which all expenditures incurred will be borne by Empyrean.
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 block.
After signing the above-mentioned PSC, except for those relating to CNOOC’s administrative functions, CNOOC will assign all of its rights and obligations under the PSC to CNOOC China Limited, a subsidiary of CNOOC Limited.
Source: Company Press Release