Shell joins CNOOC for exploration offshore China, Gabon
July 25, 2012
Shell has signed two separate production sharing contracts with CNOOC.
Offshore staff
THE HAGUE, Netherlands –Shell has signed two separate production sharing contracts with CNOOC. One covers blocks 62/02 and 62/17 in Yinggehai basin, China, and the other is for exploration blocks BC9 and BCD10 offshore Gabon.
In the Yinggehai basin, Shell, as operator, will apply advanced seismic acquisition and processing technologies to conduct 3D seismic data surveys. Shell will cover the costs of seismic data acquisition and will use advanced drilling technologies to drill during the exploration phase. Shell will hold a 100% working interest during exploration, and that will be reduced to 49% in any development phase, with CNOOC as majority partner.
In Gabon, CNOOC will reimburse Shell for 25% of certain pastexploration costs and carry part of the future exploration costs. Shell will remain operator with 75% interest. The agreement is subject to government approval.
