CNOOC, BG Group sign PSC for offshore China block

HONG KONG -- China National Offshore Oil Corp. (CNOOC) has signed a production sharing contract (PSC) with BG Group for block 63/16.

Block 63/16 is in the Qiong Dong Nan basin of western South China Sea. The block covers 2,623 sq km (1,013 sq mi) in water depth ranging from 90 m to 165 m (295 ft to 541 ft).

Under the terms of the contract, BG Group will conduct 3D seismic survey and exploration drilling. All expenditures incurred during the exploration period will be borne by BG Group. CNOOC has the right to participate in up to 51% working interest in any commercial discoveries in the block.