China National Offshore Oil Corporation (CNOOC) has signed a production sharing contract (PSC) with Husky Oil Operations (China) for a new exploration block in the South China Sea.
Covering a total area of 44km² in depths of 100m, the new Block 16/25 is situated in the Pearl River Mouth Basin, nearly 150km south-east of the Hong Kong Special Administrative Region.
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Under the PSC, Husky will assume operatorship of the block during the exploration period with 100% working interest and have responsibility for conducting an exploration campaign in Block 16/25.
All expenditure in this exploration programme will be incurred by Husky.
CNOOC is entitled to assume a participating interest of up to 51% during the development and production phase, if Husky makes any commercial discovery during exploration.
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Following execution of this PSC agreement, except for those relating to CNOOC’s administrative functions, the company will assign all of its rights and obligations under PSC to CNOOC China.
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By GlobalDataHusky has planned to drill two exploration wells in the shallow water block during the 2018 timeframe, together with two planned exploration wells at the adjacent exploration Block 15/33.
Headquartered in Calgary in Alberta, Husky operates in western and Atlantic Canada, US and the Asia Pacific Region across upstream and downstream business segments.
Image: Husky Energy headquarters. Photo: courtesy of Surrealplaces at English Wikipedia.
