CNOOC signs PSC with Shell

On August 1, CNOOC Limited announced that its parent company, China National Offshore Oil Corporation (CNOOC) has signed production sharing contract (PSC) with Shell China Exploration and Production Company Limited (Shell) for Block 35/10 in Yinggehai Basin in the South China Sea, said in the company's press release.

Block 35/10 is located in Yinggehai Basin in the South China Sea. It covers a total area of 3,427 square kilometers with water depth of 80-110 meters.

According to the terms of the PSC, Shell will conduct 3D seismic data survey and may drill exploration wells in the block during the exploration period, in which all expenditures incurred will be borne by Shell. CNOOC has the right to participate in up to 51% working interest in any commercial discoveries in the block.