CNOOC has signed two production sharing contracts with SK Innovation for Blocks 04/20 and 17/03 in the South China Sea.
The two blocks are located in the Pearl River Mouth Basin in water depths of between 50-100 metres.
According to the terms of the PSCs, SK shall act as the operator of the two blocks.
The exploration costs required for the exploration operations will be borne by CNOOC and SK in a proportion of 20% and 80% of participating interest, respectively.
Both parties will conduct 2D seismic data surveys and will drill exploration wells. Once entering the development phase, CNOOC has the right to participate in up to 60% of the working interest in any commercial discoveries in the blocks.
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