CNOOC and Eni Collaborate in South China Sea

Hong Kong - CNOOC Limited announced that its parent company, China National Offshore Oil Corporation (CNOOC), has signed a production-sharing contract (PSC) with Eni China B.V. (Eni) for the deepwater Block 30/27 in South China Sea.

Block 30/27, located 400 kilometers off the coast of Hong Kong with a total area of 5,130 square kilometers, is one of the blocks CNOOC offered for foreign cooperation in 2011.

According to the terms of the contract, Eni will conduct a 3D seismic survey and drill one exploration well in Block 30/27. All expenditures incurred during the exploration period will be borne by Eni. CNOOC Limited has the right to participate in up to a 51 percent working interest in any commercial discoveries in the block.

“Oil and gas resources are rich in the deepwater South China Sea and are one of the main sources for the Company’s medium- and long-term development,” said Zhu Weilin, Executive Vice President of the Company and General Manager of Exploration Department. “By joining hands with Eni again, we expect great success on the project.”

Eni also has equity interest in Blocks 16/08 and 16/19, located in the South China Sea, and is the Operator in Block 28/20.