China: CNOOC, ROC Ink PSC for Bohai Bay Block

China National Offshore Oil Corporation (CNOOC) and Roc Oil have signed a production sharing contract (PSC) for Block 09/05 in Bohai bay, offshore China.

Block 09/05 is located 50 kilometers southeast of Tianjin, with a total area of 355 square kilometers and water depth of 4-10 meters.

Under the agreement signed today, ROC will conduct 3D seismic survey and drill exploration wells in Block 09/05 during the exploration period, in which all expenditures incurred will be borne by ROC. CNOOC has the right to participate in up to 51% working interest in any commercial discoveries in the block.

Mr. Zhu Weilin, Executive Vice President of the Company and General Manager of Exploration Department commented, “We are very pleased to join hands with ROC again. We, like ROC, have full confidence in the resource potential of Bohai.”

There are several oil fields located offshore in the Bohai Bay. It has been a very interesting area for exploration and production companies, especially after CNOOC recently announced a successful appraisal of the Penglai(PL)9-1 hydrocarbon bearing structure following the discovery made in 2010. The appraisal confirmed that PL9-1 is a large oilfield.

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Offshore Energy Today Staff, May 11, 2012