CNOOC Ltd. Signs Production Sharing Contract With Smart Oil - Quick Facts

(RTTNews) - CNOOC Ltd. (CEO) announced that its parent company, China National Offshore Oil Corporation or CNOOC has signed production sharing contract or PSC with Smart Oil Investment Ltd. for Block 05/31 in Bohai.

Block 05/31 is located in the junction of Qikou Sag and Nanpu Sag of the West of Bohai. It covers a total area of 270 square kilometers with water depth ranging from 5 to 15 meters.

Going by the the terms of the PSC, Smart Oil will conduct 3D seismic data survey and drill exploration wells in the block during the exploration period, in which all expenditures incurred will be borne by Smart Oil.

CNOOC has the right to participate in up to 51% working interest in any commercial discoveries in the block, the company said.