CNOOC Signed Amendment Agreements to PSC for Three Deepwater Blocks

September 7, 2010
CNOOC Limited's (NYSE: CEO) parent company, China National Offshore Oil Corporation (CNOOC) has signed amendment agreements to the Production Sharing Contracts (PSCs) with Chevron China (Chevron), BP China (BP) and Devon Energy Corporation (Devon) for deepwater blocks 42/05, 64/18 and 53/30 in South China Sea, CNOOC Limited reported in a news release. These agreements have been approved by the Chinese government.
Prior to this, Chevron and BP signed Sale and Purchase Agreements with Devon for the above blocks: Chevron acquired a 59.18 percent interest in block 42/05 and a 100 percent interest in blocks 64/18 and 53/30 from Devon in the exploration phase;BP acquired the remaining interest of Devon in block 42/05.
Block 42/05, located in Baiyun Sag of Pearl River Mouth Basin in the Eastern South China Sea, covers a total area of 6,939 square kilometers. Blocks 64/18 and 53/30 are located in Qiong Dong Nan Basin in the Western South China Sea with acreage of 7,712 and 6,313 square kilometers respectively. Water depth of the three blocks ranges from 300 to 2,000 meters.
During the exploration period, Chevron will act as the Operator in the three blocks. CNOOC Limited has the right to participate in up to a 51 percent interest in the event of any commercial discovery in the blocks.
Mr. Zhu Weilin, Executive Vice President of the Company and General Manager of the Exploration Department commented, “We welcome Chevron and BP to become our new partners in these blocks and look forward to the joint exploration of the great deepwater potential in the South China Sea.”
In 2005 and 2006, CNOOC signed three PSCs with Devon for blocks 42/05, 64/18 and 53/30.
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