Shell inks trio of deals with CNOOC

by on July 25, 2012 10:30 am BST

Shell has signed two production sharing contracts and a farm-out agreement with China National Offshore Oil Corporation regarding two plays off China and one off Gabon.

In China, Shell will
operate blocks 62/02 and 62/17 in the Yinggehai Basin.

The Anglo-Dutch supermajor is to pay for the acquisition of 3D
seismic data and drill exploration wells on the blocks during the exploration
phase on a 100% working interest.

CNOOC will hold a 51% interest in any eventual development
phase, with Shell reduced to 49%.

In Gabon, CNOOC is to acquire a 25% participating interest
in offshore exploration blocks BC9 and BCD10, which are currently wholly owned
by Shell, in return for reimbursing Shell for 25% of certain past exploration
costs and carrying part of the future exploration costs.

In April, the two companies agreed to team up on joint technical studies for unconventional exploration in China’s Anhui province.