CNOOC Signs PSC with Santa Fe Energy

China National Offshore Oil Corporation announced to have signed a new Production Sharing Contract (PSC) with Santa Fe Energy Resources (China) Limited ("Santa Fe"). The contract covers the exploration area of Block 27/10 in the Pearl River Mouth Basin of South China Sea.

Block 27/10 is in the Pearl River Mouth Basin of South China Sea, about 160 kilometers south of Hong Kong. It covers an area of 6,546 square kilometers. Santa Fe is committed to investing at least US$10 million for explorations in the block within the term of the contract.

Santa Fe is active in offshore China exploration in recent years. It is currently participating in the exploration of 6 other blocks.

Under the terms of the PSC, CNOOC Limited has an option to take up to 51% working interest in any commercial discoveries made in the block.

This contract marks the 147th PSC signed with foreign companies by CNOOC to date.