China’s largest offshore energy producer CNOOC Limited said its parent company China National Offshore Oil Corporation, signed a production sharing contract with Smart Oil for an offshore block in China.
The contract area is the Bohai 09/17 Block, located in the Qikou sag, Bohai Bay Basin in China. It covers a total area of 509.3 square kilometers with a water depth of 5-10 meters.
According to the terms of the contract, Smart Oil will be the operator during the exploration period and conduct exploration activities in the block and bear any cost incurred, CNOOC said in a statement.
Once entering the development phase, CNOOC has the right to participate in up to 51 per cent of the participating interest in any commercial discoveries of the Bohai 09/17 Block.