CNOOC and BG Group Join Hands in South China Sea    

China National Offshore Oil Corporation (CNOOC) has signed a production sharing contract (PSC) with BG International Limited (BG Group) for block 63/16. CNOOC's listing arm CNOOC Ltd. released on December 16th, 2009.
   Block 63/16 is located in the Qiong Dong Nan Basin of the western South China Sea. The block covers a total area of 2 623 square kilometers in water depth ranging from 90 to 165 meters. Block 63/16 is one of the blocks CNOOC offered for cooperation in 2007.
   Under the contract, BG Group will conduct 3D seismic survey and exploration drilling. All expenditures incurred during exploration period will be borne by BG Group. CNOOC has the right to participate in up to 51% working interest in any commercial discoveries in the block.