(EnergyAsia, March 30) — Chinese upstream company CNOOC Limited said its parent company, China National Offshore Oil Corporation (CNOOC) has signed a production sharing contract (PSC) with Primeline Energy China limited (PECL) and Primeline Petroleum Corporation (PPC) for Block 25/34 in the East China Sea.
Block 25/34 covers a total area of 7006 sq km and is located about 390 kilometers southeast of Shanghai, in water depth ranging from 75 to 95 meters. Under the terms of the contract, Primeline will acquire additional seismic and drill exploration wells during the exploration period.
CNOOC Limited said Primeline will fully fund the expenditure in the exploration period.
It added: “CNOOC has the right to participate with up to a 51% interest at no cost in any commercial discoveries in the block.”
Its senior vice president, Zhang Guohua, said: “We are committed to both PSC and independent explorations. We believe the singing of the PSC will further help brighten the prospect of Block 25/34.”
This is the third PSC contract signed between CNOOC and Primeline.