Shell has signed two offshore oil and gas production sharing contracts (PSCs) with China National Offshore Oil Corporation (CNOOC) for blocks 62/02 and 62/17 in the Yinggehai Basin, offshore of China.
The company, as operator, will cover the costs of a seismic acquistion and processing technologies to conduct 3D seismic data surveys in the blocks.
Shell will hold a 100% working interest during the exploration phase, which will be reduced to 49% in any eventual development phase, with CNOOC as the majority partner.
In a seperate transaction, CNOOC has agreed to participate in two Shell exploration blocks offshore of Gabon, West Africa. CNOOC will acquire a 25% participating interest in offshore exploration blocks BC9 and BCD10, subject to government approval.
The Chinese firm will reimburse Shell for 25% of past exploration costs and carry part of the future exploration costs. Shell will remain operator with a 75% interest.
Shell also signed a PSC amendment with China National Petroleum Corporation (CNPC) for a new development phase for the Changbei gas field in the Ordos Basin, in offshore China.
This project could increase the current production plateau of 320 million cubic feet each day.
Lim Haw-Kuang, Shell China executive chairman, said: "These new projects in partnership with Chinese companies are the latest showcase of our China strategy to work with our Chinese counterparts, both in China and globally, to help meet the country’s energy needs to fuel its fast growing economy."