China National Offshore Oil (CNOOC) has signed a production sharing contract (PSC) with Roc Oil (Bohai) and Smart Oil Investment (Smart Oil) for Weizhou 10-3W oilfield and Block 22/04 (contract area) in the South China Sea.
Weizhou 10-3W oilfield and Block 22/04 are located in the Beibu Gulf Basin of the South China Sea. The Weizhou 10-3W oilfield covers a total area of 18 square kilometers with a water depth of 40 meters and the Block 22/04 covers a total area of 80 square kilometers with a water depth of 40-80 meters.
According to the terms of the PSC, Roc Oil and Smart Oil shall act as the joint operator of the contract area. Roc Oil and Smart Oil shall conduct the development operation of Weizhou 10-3W oilfield in proportion to their participating interests (Roc Oil 35% and Smart Oil 25%) and CNOOC participates in with the rest 40%.
During the exploration phase of Block 22/04, Smart Oil and Roc Oil shall bear all exploration expenditures incurred in proportion to their participating interests (Smart Oil 65% and Roc Oil 35%).
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 22/04.
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