Roc Oil (China), on behalf of the Beibu Gulf project joint venture, announced that the Supplemental Development Agreement ("SDA") to the Petroleum Contract for development of the WZ 6-12 and WZ 12-8 West Oil Fields in the Beibu Gulf, offshore China was signed in Beijing on August 24.
The SDA outlines the commercial terms that were agreed with China National Offshore Oil Corporation (CNOOC) in May, as well as arrangements regarding facility integration and the sharing of services and personnel. The SDA confirms that CNOOC will take a 51% participating interest in the project.
The proposed development includes the use of existing CNOOC operated facilities to host production from WZ 6-12 and WZ 12-8 West. The commercial terms agreed cover tariff charges for use of the CNOOC pipeline and terminal facilities, as well as other cost sharing arrangements.
To take advantage of the existing synergies and lower cost structures, CNOOC will operate the new project's facilities on behalf of the joint venture and will be responsible for engineering and construction. ROC staff will be seconded to a joint project team.
Overall Development Plan ("ODP") documentation has been submitted to CNOOC for expert review and final approval. Following final CNOOC approval, the joint venture will proceed to its Final Investment Decision and the ODP will be submitted to the Chinese Government.
First oil production is anticipated in 2H 2012.
Participating interests in the Beibu Gulf project will be:
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